Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-15185 | |
Entity Registrant Name | FIRST HORIZON CORP | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-0803242 | |
Entity Address, Address Line One | 165 Madison Avenue | |
Entity Address, City or Town | Memphis, | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 38103 | |
City Area Code | 901 | |
Local Phone Number | 523-4444 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 536,609,492 | |
Entity Central Index Key | 0000036966 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
$.625 Par Value Common Capital Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | $.625 Par Value Common Capital Stock | |
Trading Symbol | FHN | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/400th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series B | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/400th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series B | |
Trading Symbol | FHN PR B | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/400th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/400th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series C | |
Trading Symbol | FHN PR C | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/400th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series D | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/400th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series D | |
Trading Symbol | FHN PR D | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/4,000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series E | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/4,000th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series E | |
Trading Symbol | FHN PR E | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/4,000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series F | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/4,000th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series F | |
Trading Symbol | FHN PR F | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 1,133 | $ 1,147 |
Interest-bearing deposits with banks | 9,475 | 14,907 |
Federal funds sold and securities purchased under agreements to resell | 712 | 641 |
Trading securities | 1,392 | 1,601 |
Securities available for sale at fair value | 8,941 | 8,707 |
Securities held to maturity (fair value of $601 and $705, respectively) | 687 | 712 |
Loans held for sale (including $143 and $258 at fair value, respectively) | 870 | 1,172 |
Loans and leases | 56,529 | 54,859 |
Allowance for loan and lease losses | (624) | (670) |
Net loans and leases | 55,905 | 54,189 |
Premises and equipment | 636 | 665 |
Goodwill | 1,511 | 1,511 |
Other intangible assets | 272 | 298 |
Other assets | 3,598 | 3,542 |
Total assets | 85,132 | 89,092 |
Liabilities | ||
Noninterest-bearing deposits | 27,114 | 27,883 |
Interest-bearing deposits | 43,436 | 47,012 |
Total deposits | 70,550 | 74,895 |
Trading liabilities | 394 | 426 |
Short-term borrowings | 1,953 | 2,124 |
Term borrowings | 1,599 | 1,590 |
Other liabilities | 2,085 | 1,563 |
Total liabilities | 76,581 | 80,598 |
Equity | ||
Preferred stock, Non-cumulative perpetual, no par value; authorized 5,000,000 shares; issued 31,686 and 26,750 shares, respectively | 1,014 | 520 |
Common stock, $0.625 par value; authorized 700,000,000 shares; issued 536,332,507 and 533,576,766 shares, respectively | 335 | 333 |
Capital surplus | 4,791 | 4,743 |
Retained earnings | 3,079 | 2,891 |
Accumulated other comprehensive loss, net | (963) | (288) |
FHN shareholders' equity | 8,256 | 8,199 |
Noncontrolling interest | 295 | 295 |
Total equity | 8,551 | 8,494 |
Total liabilities and equity | $ 85,132 | $ 89,092 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, at fair value | $ 601 | $ 705 |
Loans held-for-sale, at fair value | $ 143 | $ 258 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 31,686 | 26,750 |
Common stock, par value (in dollars per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares issued (in shares) | 536,332,507 | 533,576,766 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income | ||||
Interest and fees on loans and leases | $ 492 | $ 496 | $ 936 | $ 1,003 |
Interest and fees on loans held for sale | 10 | 7 | 20 | 14 |
Interest on investment securities | 45 | 29 | 83 | 58 |
Interest on trading securities | 13 | 7 | 24 | 14 |
Interest on other earning assets | 23 | 3 | 31 | 5 |
Total interest income | 583 | 542 | 1,094 | 1,094 |
Interest expense | ||||
Interest on deposits | 18 | 24 | 29 | 48 |
Interest on trading liabilities | 4 | 2 | 6 | 3 |
Interest on short-term borrowings | 2 | 1 | 3 | 2 |
Interest on term borrowings | 17 | 18 | 35 | 37 |
Total interest expense | 41 | 45 | 73 | 90 |
Net interest income | 542 | 497 | 1,021 | 1,004 |
Provision for credit losses | 30 | (115) | (10) | (160) |
Net interest income after provision for credit losses | 512 | 612 | 1,031 | 1,164 |
Noninterest income | ||||
Fixed income | 51 | 102 | 124 | 228 |
Deposit transactions and cash management | 42 | 44 | 86 | 86 |
Mortgage banking and title income | 34 | 38 | 56 | 91 |
Brokerage, management fees and commissions | 24 | 21 | 48 | 41 |
Card and digital banking fees | 23 | 21 | 43 | 38 |
Other service charges and fees | 15 | 11 | 28 | 21 |
Trust services and investment management | 12 | 14 | 25 | 26 |
Securities gains (losses), net | 0 | 11 | 6 | 11 |
Deferred compensation income | (17) | 7 | (21) | 9 |
Other income | 17 | 16 | 35 | 32 |
Total noninterest income | 201 | 285 | 430 | 583 |
Noninterest expense | ||||
Personnel expense | 265 | 306 | 545 | 624 |
Net occupancy expense | 33 | 33 | 64 | 71 |
Computer software | 29 | 30 | 58 | 57 |
Legal and professional fees | 17 | 16 | 40 | 31 |
Operations services | 23 | 19 | 43 | 35 |
Contract employment and outsourcing | 12 | 13 | 31 | 27 |
Amortization of intangible assets | 13 | 14 | 26 | 28 |
Equipment expense | 11 | 12 | 23 | 23 |
Advertising and public relations | 10 | 5 | 21 | 9 |
Communications and delivery | 9 | 10 | 19 | 19 |
Other expense | 66 | 40 | 112 | 118 |
Total noninterest expense | 488 | 498 | 982 | 1,042 |
Income (loss) before income taxes | 225 | 399 | 479 | 705 |
Income tax expense | 48 | 88 | 105 | 159 |
Net income | 177 | 311 | 374 | 546 |
Net income attributable to noncontrolling interest | 3 | 3 | 6 | 6 |
Net income attributable to controlling interest | 174 | 308 | 368 | 540 |
Preferred stock dividends | 8 | 13 | 16 | 21 |
Net income available to common shareholders | $ 166 | $ 295 | $ 352 | $ 519 |
Basic earnings per common share (in dollars per share) | $ 0.31 | $ 0.54 | $ 0.66 | $ 0.94 |
Diluted earnings per common share (in dollars per share) | $ 0.29 | $ 0.53 | $ 0.63 | $ 0.93 |
Weighted average common shares (in shares) | 534,604 | 550,297 | 533,915 | 551,268 |
Diluted average common shares (in shares) | 569,435 | 556,210 | 559,834 | 556,498 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statements of Comprehensive Income/(loss) | ||||
Net income | $ 177 | $ 311 | $ 374 | $ 546 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gains (losses) on securities available for sale | (231) | 38 | (635) | (65) |
Net unrealized gains (losses) on cash flow hedges | (22) | (2) | (43) | (4) |
Net unrealized gains (losses) on pension and other postretirement plans | 1 | 2 | 3 | 6 |
Other comprehensive income (loss) | (252) | 38 | (675) | (63) |
Comprehensive income (loss) | (75) | 349 | (301) | 483 |
Comprehensive income attributable to noncontrolling interest | 3 | 3 | 6 | 6 |
Comprehensive income (loss) attributable to controlling interest | (78) | 346 | (307) | 477 |
Income tax expense (benefit) of items included in other comprehensive income: | ||||
Net unrealized gains (losses) on securities available for sale | (75) | 12 | (206) | (20) |
Net unrealized gains (losses) on cash flow hedges | (7) | 0 | (14) | (1) |
Net unrealized gains (losses) on pension and other postretirement plans | $ 1 | $ 1 | $ 1 | $ 2 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | ||
Balance, beginning of period (in shares) at Dec. 31, 2020 | 26,250 | 555,031 | |||||||
Balance, beginning of period at Dec. 31, 2020 | $ 8,307 | $ 470 | $ 347 | $ 5,074 | $ 2,261 | $ (140) | [1] | $ 295 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 236 | 233 | 3 | ||||||
Other comprehensive income (loss) | (101) | (101) | [1] | ||||||
Comprehensive income (loss) | 135 | 233 | (101) | [1] | 3 | ||||
Cash dividends declared: | |||||||||
Preferred stock | (8) | (8) | |||||||
Common stock | (84) | (84) | |||||||
Common stock repurchased (in shares) | [2] | (3,864) | |||||||
Common stock repurchased | [2] | (62) | $ (2) | (60) | |||||
Common stock issued for: | |||||||||
Stock options exercised and restricted stock awards (in shares) | 1,208 | ||||||||
Stock options exercised and restricted stock awards | 12 | 12 | |||||||
Stock-based compensation expense | 10 | 10 | |||||||
Dividends declared - noncontrolling interest of subsidiary preferred stock | (3) | (3) | |||||||
Balance, ending of period (in shares) at Mar. 31, 2021 | 26,250 | 552,375 | |||||||
Balance, end of period at Mar. 31, 2021 | 8,307 | $ 470 | $ 345 | 5,036 | 2,402 | (241) | [1] | 295 | |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 26,250 | 555,031 | |||||||
Balance, beginning of period at Dec. 31, 2020 | 8,307 | $ 470 | $ 347 | 5,074 | 2,261 | (140) | [1] | 295 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 546 | ||||||||
Other comprehensive income (loss) | (63) | ||||||||
Comprehensive income (loss) | 483 | ||||||||
Balance, ending of period (in shares) at Jun. 30, 2021 | 26,750 | 550,865 | |||||||
Balance, end of period at Jun. 30, 2021 | 8,565 | $ 520 | $ 344 | 4,997 | 2,612 | (203) | [1] | 295 | |
Balance, beginning of period (in shares) at Mar. 31, 2021 | 26,250 | 552,375 | |||||||
Balance, beginning of period at Mar. 31, 2021 | 8,307 | $ 470 | $ 345 | 5,036 | 2,402 | (241) | [1] | 295 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 311 | 308 | 3 | ||||||
Other comprehensive income (loss) | 38 | 38 | [1] | ||||||
Comprehensive income (loss) | 349 | 308 | 38 | [1] | 3 | ||||
Cash dividends declared: | |||||||||
Preferred stock | (8) | (8) | |||||||
Common stock | (85) | (85) | |||||||
Preferred stock issuance (in shares) | 1,500 | ||||||||
Preferred stock issuance | 145 | $ 145 | |||||||
Call of preferred stock (in shares) | (1,000) | ||||||||
Call of preferred stock | (100) | $ (95) | (5) | ||||||
Common stock repurchased (in shares) | [2] | (3,435) | |||||||
Common stock repurchased | [2] | (64) | $ (3) | (61) | |||||
Common stock issued for: | |||||||||
Stock options exercised and restricted stock awards (in shares) | 1,925 | ||||||||
Stock options exercised and restricted stock awards | 13 | $ 2 | 11 | ||||||
Stock-based compensation expense | 11 | 11 | |||||||
Dividends declared - noncontrolling interest of subsidiary preferred stock | (3) | (3) | |||||||
Balance, ending of period (in shares) at Jun. 30, 2021 | 26,750 | 550,865 | |||||||
Balance, end of period at Jun. 30, 2021 | 8,565 | $ 520 | $ 344 | 4,997 | 2,612 | (203) | [1] | 295 | |
Balance, beginning of period (in shares) at Dec. 31, 2021 | 26,750 | 533,577 | |||||||
Balance, beginning of period at Dec. 31, 2021 | 8,494 | $ 520 | $ 333 | 4,743 | 2,891 | (288) | [3] | 295 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 198 | 195 | 3 | ||||||
Other comprehensive income (loss) | (423) | (423) | [3] | ||||||
Comprehensive income (loss) | (225) | 195 | (423) | [3] | 3 | ||||
Cash dividends declared: | |||||||||
Preferred stock | (8) | (8) | |||||||
Common stock | (82) | (82) | |||||||
Preferred stock issuance (in shares) | 4,936 | ||||||||
Preferred stock issuance | 494 | $ 494 | |||||||
Common stock repurchased (in shares) | (120) | ||||||||
Common stock repurchased | (2) | (2) | |||||||
Common stock issued for: | |||||||||
Stock options exercised and restricted stock awards (in shares) | 1,130 | ||||||||
Stock options exercised and restricted stock awards | 15 | $ 1 | 14 | ||||||
Stock-based compensation expense | 14 | 14 | |||||||
Dividends declared - noncontrolling interest of subsidiary preferred stock | (3) | (3) | |||||||
Balance, ending of period (in shares) at Mar. 31, 2022 | 31,686 | 534,587 | |||||||
Balance, end of period at Mar. 31, 2022 | 8,697 | $ 1,014 | $ 334 | 4,769 | 2,996 | (711) | [3] | 295 | |
Balance, beginning of period (in shares) at Dec. 31, 2021 | 26,750 | 533,577 | |||||||
Balance, beginning of period at Dec. 31, 2021 | 8,494 | $ 520 | $ 333 | 4,743 | 2,891 | (288) | [3] | 295 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 374 | ||||||||
Other comprehensive income (loss) | (675) | ||||||||
Comprehensive income (loss) | (301) | ||||||||
Balance, ending of period (in shares) at Jun. 30, 2022 | 31,686 | 536,333 | |||||||
Balance, end of period at Jun. 30, 2022 | 8,551 | $ 1,014 | $ 335 | 4,791 | 3,079 | (963) | [3] | 295 | |
Balance, beginning of period (in shares) at Mar. 31, 2022 | 31,686 | 534,587 | |||||||
Balance, beginning of period at Mar. 31, 2022 | 8,697 | $ 1,014 | $ 334 | 4,769 | 2,996 | (711) | [3] | 295 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 177 | 174 | 3 | ||||||
Other comprehensive income (loss) | (252) | (252) | [3] | ||||||
Comprehensive income (loss) | (75) | 174 | (252) | [3] | 3 | ||||
Cash dividends declared: | |||||||||
Preferred stock | (8) | (8) | |||||||
Common stock | (83) | (83) | |||||||
Common stock repurchased (in shares) | (334) | ||||||||
Common stock repurchased | (8) | $ (1) | (7) | ||||||
Common stock issued for: | |||||||||
Stock options exercised and restricted stock awards (in shares) | 2,080 | ||||||||
Stock options exercised and restricted stock awards | 13 | $ 2 | 11 | ||||||
Stock-based compensation expense | 18 | 18 | |||||||
Dividends declared - noncontrolling interest of subsidiary preferred stock | (3) | (3) | |||||||
Balance, ending of period (in shares) at Jun. 30, 2022 | 31,686 | 536,333 | |||||||
Balance, end of period at Jun. 30, 2022 | $ 8,551 | $ 1,014 | $ 335 | $ 4,791 | $ 3,079 | $ (963) | [3] | $ 295 | |
[1]Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of other comprehensive income (loss) have been attributed solely to FHN as the controlling interest holder.[2]Includes $59 million and $57 million repurchased under share repurchase programs for the three months ended March 31, 2021 and June 30, 2021, respectively.[3]Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of other comprehensive income (loss) have been attributed solely to FHN as the controlling interest holder. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |||
Common stock - cash dividends declared per share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||
Common stock repurchased under share repurchase program | $ 8 | $ 2 | $ 64 | [1] | $ 62 | [1] |
Preferred Stock | ||||||
Number of shares issued in transaction (in shares) | 4,936 | 1,500 | ||||
Preferred stock issuance, net of offering cost (in dollars per share) | $ 100,000 | $ 100,000 | ||||
First Horizon Share Repurchase Program | ||||||
Common stock repurchased under share repurchase program | $ 57 | $ 59 | ||||
[1]Includes $59 million and $57 million repurchased under share repurchase programs for the three months ended March 31, 2021 and June 30, 2021, respectively. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | ||
Net income | $ 374 | $ 546 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for credit losses | (10) | (160) |
Deferred income tax expense (benefit) | 157 | 23 |
Depreciation and amortization of premises and equipment | 30 | 31 |
Amortization of intangible assets | 26 | 28 |
Net other amortization and accretion | (15) | (32) |
Net (increase) decrease in trading securities | 1,343 | 1,013 |
Net (increase) decrease in derivatives | 558 | 253 |
Stock-based compensation expense | 32 | 21 |
Securities (gains) losses, net | (6) | (11) |
(Gain) loss on BOLI | (3) | (2) |
Net (gains) losses on sale/disposal of fixed assets | (1) | 33 |
Loans held for sale: | ||
Purchases and originations | (2,467) | (2,804) |
Gross proceeds from settlements and sales | 1,594 | 2,050 |
(Gain) loss due to fair value adjustments and other | 42 | (69) |
Other operating activities, net | (136) | 95 |
Total adjustments | 1,144 | 469 |
Net cash provided by (used in) operating activities | 1,518 | 1,015 |
Investing Activities | ||
Proceeds from sales of securities available for sale | 0 | 33 |
Proceeds from maturities of securities available for sale | 760 | 1,175 |
Purchases of securities available for sale | (1,863) | (1,647) |
Proceeds from prepayments of securities held to maturity | 25 | 0 |
Proceeds from sales of premises and equipment | 15 | 4 |
Purchases of premises and equipment | (19) | (26) |
Proceeds from BOLI | 6 | 6 |
Net (increase) decrease in loans and leases | (1,640) | 1,601 |
Net (increase) decrease in interest-bearing deposits with banks | 5,432 | (5,100) |
Other investing activities, net | 4 | 8 |
Net cash provided by (used in) investing activities | 2,720 | (3,946) |
Common stock: | ||
Stock options exercised | 26 | 25 |
Cash dividends paid | (162) | (167) |
Repurchase of shares | (10) | (126) |
Preferred stock: | ||
Preferred stock issuance | 494 | 145 |
Cash dividends paid - preferred stock - noncontrolling interest | (6) | (6) |
Cash dividends paid - preferred stock | (16) | (16) |
Net increase (decrease) in deposits | (4,345) | 3,304 |
Net increase (decrease) in short-term borrowings | (171) | 48 |
Increases (decreases) in term borrowings | 9 | 1 |
Net cash provided by (used in) financing activities | (4,181) | 3,208 |
Net increase (decrease) in cash and cash equivalents | 57 | 277 |
Cash and cash equivalents at beginning of period | 1,788 | 1,648 |
Cash and cash equivalents at end of period | 1,845 | 1,925 |
Supplemental Disclosures | ||
Total interest paid | 71 | 98 |
Total taxes paid | 10 | 173 |
Total taxes refunded | 2 | 4 |
Transfer from loans to OREO | 0 | 2 |
Transfer from loans HFS to trading securities | 1,133 | 871 |
Transfer from loans to loans HFS | $ 0 | $ (31) |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all significant adjustments, consisting of normal and recurring items, considered necessary for fair presentation. These interim financial statements should be read in conjunction with FHN's audited consolidated financial statements and notes in FHN's Annual Report on Form 10-K, as amended, for the year ended December 31, 2021. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts reported in prior years have been reclassified to conform to the current period presentation. See the Glossary of Acronyms and Terms included in this Report for terms used herein. Pending Merger As previously disclosed, on February 27, 2022, FHN entered into an Agreement and Plan of Merger (the “TD Merger Agreement”) with The Toronto-Dominion Bank, a Canadian chartered bank (“TD”), TD Bank US Holding Company, a Delaware corporation and indirect, wholly owned subsidiary of TD (“TD-US”), and Falcon Holdings Acquisition Co., a Delaware corporation and wholly owned subsidiary of TD-US (“Merger Sub”). Pursuant to the TD Merger Agreement, FHN and Merger Sub will merge (the “First Holding Company Merger”), with FHN continuing as the surviving entity in the merger. Following the First Holding Company Merger, at the election of TD, FHN and TD-US will merge (the “Second Holding Company Merger” and, together with the First Holding Company Merger, the “Holding Company Mergers”), with TD-US continuing as the surviving entity in the merger. Upon the terms and subject to the conditions set forth in the TD Merger Agreement, each share of FHN common stock, par value $0.625 per share, (“Company Common Stock”), issued and outstanding immediately prior to the effective time of the First Holding Company Merger (the “First Effective Time”) will be converted into the right to receive $25.00 (USD) per share in cash, without interest. If the transaction does not close on or before November 27, 2022, shareholders will receive an additional $0.65 per share of Company Common Stock on an annualized basis (or approximately 5.4 cents per month) for the period from November 28, 2022 through the day immediately prior to the closing. Each outstanding share of FHN’s preferred stock, series B, C, D, E and F, will remain issued and outstanding in connection with the First Holding Company Merger. If TD elects to effect the Second Holding Company Merger, at the effective time of the Second Holding Company Merger, each outstanding share of FHN’s preferred stock will be converted into a share of a newly created, corresponding series of preferred stock of TD-US having terms as described in the Merger Agreement. Following the completion of the First Holding Company Merger, at such time as determined by TD, First Horizon Bank and TD Bank, N.A., a national banking association (“TDBNA”) will merge, with TDBNA surviving as a subsidiary of TD-US (the “Bank Merger” and together with the Holding Company Mergers, the “Proposed TD Merger”). The Proposed TD Merger is expected to be completed in the first quarter of TD's 2023 fiscal year, and is subject to customary closing conditions, including approvals from U.S. and Canadian regulatory authorities. FHN's shareholders approved the merger on May 31, 2022. Merger and integration expenses related to the Proposed TD Merger are recorded in FHN’s Corporate segment. Expenses recognized during the three and six months ended June 30, 2022 were approximately $25 million and $34 million, respectively. Accounting Changes With Extended Transition Periods In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides several optional expedients and exceptions to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The provisions of ASU 2020-04 primarily affect 1) contract modifications (e.g., loans, leases, debt, and derivatives) made in anticipation that a reference rate (e.g., LIBOR) will be discontinued and 2) the application of hedge accounting for existing relationships affected by those modifications. The provisions of ASU 2020-04 are effective upon release and apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by ASU 2020-04 do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. FHN has identified contracts affected by reference rate reform and developed modification plans for those contracts. FHN has elected to utilize the optional expedients and exceptions provided by ASU 2020-04 for certain contract modifications that have already been implemented. For cash flow hedges that reference 1-Month USD LIBOR, FHN has applied expedients related to 1) the assumption of probability of cash flows when reference rates are changed on hedged items 2) avoiding de-designation when critical terms (i.e., reference rates) change and 3) the allowed assumption of shared risk exposure for hedged items. For its 2022 cash flow hedges that reference 1-Month Term SOFR, FHN has applied expedients related to 1) the allowed assumption of shared risk exposure for hedged items and 2) multiple allowed assumptions of conformity between hedged items and the hedging instrument when assessing effectiveness. FHN anticipates that it will continue to utilize the expedients and exceptions for future modifications in situations where they mitigate potential accounting outcomes that do not faithfully represent management’s intent or risk management activities, consistent with the purpose of the standard. The FASB has proposed an extension of the transition window for ASU 2020-04 until December 31, 2024, consistent with key USD LIBOR tenors continuing to be published through June 30, 2023. In January 2021, the FASB issued ASU 2021-01, "Scope" to expand the scope of ASU 2020-04 to apply to certain contract modifications that were implemented in October 2020 by derivative clearinghouses for the use of Secure Overnight Funding Rate (SOFR) in discounting, margining and price alignment for centrally cleared derivatives, including derivatives utilized in hedging relationships. ASU 2021-01 also applies to derivative contracts affected by the change in discounting convention regardless of whether they are centrally cleared (i.e., bi-lateral contracts can also be modified) and regardless of whether they reference LIBOR. ASU 2021-01 was effective immediately upon issuance with retroactive application permitted. FHN elected to retroactively apply the provisions of ASU 2021-01 because FHN's centrally cleared derivatives were affected by the change in discounting convention and because FHN has other bi-lateral derivative contracts that may be modified to conform to the use of SOFR for discounting. Adoption did not have a significant effect on FHN's reported financial condition or results of operations. Accounting Changes Issued But Not Currently Effective ASU 2022-01 In March 2022, the FASB issued ASU 2022-01, "Fair Value Hedging - Portfolio Layer Method", which will expand FHN's ability to hedge the benchmark interest rate risk of portfolios of financial interests (or beneficial interests) in a fair value hedge. The provisions of ASU 2022-01 also permit FHN to apply the same portfolio hedging method to both prepayable and non-prepayable financial assets, namely by expanding the use of the "portfolio layer" method to non-prepayable financial assets. ASU 2022-01 also permits multiple hedged layers to be designated as a single closed portfolio to achieve hedge accounting. Additionally, the ASU requires that basis adjustments must be maintained on the closed portfolio of assets as a whole, and not allocated to individual assets for active portfolio layer method hedges. ASU 2022-01 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. FHN is evaluating the impact of ASU 2022-01 on its future hedging strategies. ASU 2022-02 Also in March 2022, the FASB issued ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosu res” that eliminates current TDR recognition and measurement guidance and instead requires the Company to evaluate whether the modification represents a new loan or a continuation of an existing loan (which is consistent with the accounting for other loan modifications). The provisions of ASU 2022-02 also enhance existing disclosure requirements and introduces new disclosures related to certain modifications made to borrowers experiencing financial difficulty. The provisions of this ASU also require FHN to disclose current period gross write-offs of loans and leases by year of origination. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2022 | |
Marketable Securities [Abstract] | |
Investment Securities | Investment Securities The following tables summarize FHN’s investment securities as of June 30, 2022 and December 31, 2021: INVESTMENT SECURITIES AT JUNE 30, 2022 June 30, 2022 (Dollars in millions) Amortized Gross Gross Fair Securities available for sale: Government agency issued MBS $ 5,268 $ 2 $ (491) $ 4,779 Government agency issued CMO 2,867 — (241) 2,626 Other U.S. government agencies 1,071 1 (98) 974 States and municipalities 623 — (61) 562 Total securities available for sale (a) $ 9,829 $ 3 $ (891) $ 8,941 Securities held to maturity: Government agency issued MBS 486 — (62) 424 Government agency issued CMO 201 — (24) 177 Total securities held to maturity $ 687 $ — $ (86) $ 601 (a) Includes $6.5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. INVESTMENT SECURITIES AT YE 2021 December 31, 2021 (Dollars in millions) Amortized Gross Gross Fair Securities available for sale: Government agency issued MBS $ 5,062 $ 42 $ (49) $ 5,055 Government agency issued CMO 2,296 8 (47) 2,257 Other U.S. government agencies 861 4 (15) 850 States and municipalities 535 11 (1) 545 Total securities available for sale (a) $ 8,754 $ 65 $ (112) $ 8,707 Securities held to maturity: Government agency issued MBS $ 509 $ — $ (5) $ 504 Government agency issued CMO 203 — (2) 201 Total securities held to maturity $ 712 $ — $ (7) $ 705 (a) Includes $6.5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. The amortized cost and fair value by contractual maturity for the debt securities portfolio as of June 30, 2022 is provided below: DEBT SECURITIES PORTFOLIO MATURITIES Held to Maturity Available for Sale (Dollars in millions) Amortized Fair Amortized Fair Within 1 year $ — $ — $ 50 $ 50 After 1 year through 5 years — — 122 117 After 5 years through 10 years — — 347 319 After 10 years — — 1,176 1,050 Subtotal — — 1,695 1,536 Government agency issued MBS and CMO (a) 687 601 8,135 7,405 Total $ 687 $ 601 $ 9,830 $ 8,941 (a) Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Gross gains and losses on sales of AFS securities for the three and six months ended June 30, 2022 and 2021 were insignificant. Cash proceeds from sales of AFS securities were insignificant for the three and six months ended June 30, 2022. Cash proceeds from sales of AFS securities were $6 million and $33 million for the three and six months ended June 30, 2021, respectively. The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of June 30, 2022 and December 31, 2021: AFS INVESTMENT SECURITIES WITH UNREALIZED LOSSES As of June 30, 2022 Less than 12 months 12 months or longer Total (Dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized Government agency issued MBS $ 3,887 $ (362) $ 787 $ (129) $ 4,674 $ (491) Government agency issued CMO 1,695 (115) 819 (126) 2,514 (241) Other U.S. government agencies 664 (65) 203 (33) 867 (98) States and municipalities 510 (59) 7 (2) 517 (61) Total $ 6,756 $ (601) $ 1,816 $ (290) $ 8,572 $ (891) As of December 31, 2021 Less than 12 months 12 months or longer Total (Dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized Government agency issued MBS $ 2,973 $ (41) $ 184 $ (8) $ 3,157 $ (49) Government agency issued CMO 1,436 (37) 248 (10) 1,684 (47) Other U.S. government agencies 459 (11) 90 (4) 549 (15) States and municipalities 68 (1) — — 68 (1) Total $ 4,936 $ (90) $ 522 $ (22) $ 5,458 $ (112) FHN has evaluated all AFS debt securities that were in unrealized loss positions in accordance with its accounting policy for recognition of credit losses. No AFS debt securities were determined to have credit losses. Total AIR not included in the fair value or amortized cost basis of AFS debt securities was $27 million and $23 million as of June 30, 2022 and December 31, 2021. Consistent with FHN's review of the related securities, there were no credit-related write downs of AIR for AFS debt securities during the reporting period. Additionally, for AFS debt securities with unrealized losses, FHN does not intend to sell them and it is more likely than not that FHN will not be required to sell them prior to recovery. Therefore, no write downs of these investments to fair value occurred during the reporting period. For HTM securities, an allowance for credit losses is required to absorb estimated lifetime credit losses. Total AIR not included in the fair value or amortized cost basis of HTM debt securities was $1 million as of June 30, 2022 and December 31, 2021. FHN has assessed the risk of credit loss and has determined that zero allowance for credit losses for HTM securities was necessary as of June 30, 2022 and December 31, 2021. The evaluation of credit risk includes consideration of third-party and government guarantees (both explicit and implicit), senior or subordinated status, credit ratings of the issuer, the effects of interest rate changes since purchase and observable market information such as issuer-specific credit spreads. The carrying amount of equity investments without a readily determinable fair value was $72 million and $70 million at June 30, 2022 and December 31, 2021, respectively. The year-to-date 2022 and 2021 gross amounts of upward and downward valuation adjustments were not significant. Unrealized losses of $9 million and unrealized gains of $3 million were recognized in the three months ended June 30, 2022 and 2021, respectively, and unrealized losses of $13 million and unrealized gains $6 million were recognized for the six months ended June 30, 2022 and 2021, respectively, for equity investments with readily determinable fair values. |
Loans and Leases
Loans and Leases | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases The loans and lease portfolio is disaggregated into portfolio segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally a disaggregation of a portfolio segment and is generally determined based on risk characteristics of the loan and FHN’s method for monitoring and assessing credit risk and performance. FHN's loan and lease portfolio segments are commercial and consumer. The classes of loans and leases are: (1) commercial, financial, and industrial, which includes commercial and industrial loans and leases and loans to mortgage companies, (2) commercial real estate, (3) consumer real estate, which includes both real estate installment and home equity lines of credit, and (4) credit card and other. The following table provides the amortized cost basis of loans and leases by portfolio segment and class as of June 30, 2022 and December 31, 2021, excluding accrued interest of $152 million and $134 million, respectively, which is included in other assets in the Consolidated Balance Sheets. LOANS AND LEASES BY PORTFOLIO SEGMENT (Dollars in millions) June 30, 2022 December 31, 2021 Commercial: Commercial and industrial (a) (b) $ 27,835 $ 26,550 Loans to mortgage companies 3,441 4,518 Total commercial, financial, and industrial 31,276 31,068 Commercial real estate 12,942 12,109 Consumer: HELOC 1,917 1,964 Real estate installment loans 9,524 8,808 Total consumer real estate 11,441 10,772 Credit card and other 870 910 Loans and leases $ 56,529 $ 54,859 Allowance for loan and lease losses (624) (670) Net loans and leases $ 55,905 $ 54,189 (a) Includes equipment financing leases of $897 million and $792 million as of June 30, 2022 and December 31, 2021, respectively. (b) Includes PPP loans fully guaranteed by the SBA of $375 million and $1.0 billion as of June 30, 2022 and December 31, 2021, respectively. Restrictions Loans and leases with carrying values of $37.1 billion and $36.6 billion were pledged as collateral for borrowings at June 30, 2022 and December 31, 2021, respectively. Concentrations of Credit Risk Most of FHN’s business activity is with clients located in the southern United States. FHN’s lending activity is concentrated in its market areas within those states. As of June 30, 2022, FHN had loans to mortgage companies of $3.4 billion and loans to finance and insurance companies of $3.7 billion. As a result, 23% of the C&I portfolio is sensitive to impacts on the financial services industry. Credit Quality Indicators FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default and the loss given default for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading system is intended to identify and measure the credit quality of the loan and lease portfolio by analyzing the migration between grading categories. It is also integral to the estimation methodology utilized in determining the ALLL since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage. PD grades are continually evaluated but require a formal scorecard annually. PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Special mention loans and leases have potential weaknesses that, if left uncorrected, may result in deterioration of FHN's credit position at some future date. Substandard commercial loans and leases have well-defined weaknesses and are characterized by the distinct possibility that FHN will sustain some loss if the deficiencies are not corrected. Doubtful commercial loans and leases have the same weaknesses as substandard loans and leases with the added characteristics that the probability of loss is high and collection of the full amount is improbable. The following tables provide the amortized cost basis of the commercial loan portfolio by year of origination and credit quality indicator as of June 30, 2022 and December 31, 2021: C&I PORTFOLIO June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 LMC (a) Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) (c) $ 2,945 $ 5,229 $ 2,354 $ 2,613 $ 1,268 $ 3,611 $ 3,441 $ 8,670 $ 498 $ 30,629 Special Mention (PD grade 13) — 18 8 35 23 72 — 80 24 260 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 4 13 27 4 58 103 — 93 85 387 Total C&I loans $ 2,949 $ 5,260 $ 2,389 $ 2,652 $ 1,349 $ 3,786 $ 3,441 $ 8,843 $ 607 $ 31,276 December 31, 2021 (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 LMC (a) Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) (c) $ 7,372 $ 3,576 $ 3,439 $ 1,455 $ 1,193 $ 2,267 $ 4,518 $ 6,386 $ 13 $ 30,219 Special Mention (PD grade 13) 25 39 50 48 36 43 — 100 4 345 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 24 61 67 103 24 48 — 129 48 504 Total C&I loans $ 7,421 $ 3,676 $ 3,556 $ 1,606 $ 1,253 $ 2,358 $ 4,518 $ 6,615 $ 65 $ 31,068 (a) LMC includes non-revolving commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower's sale of those mortgage loans to third party investors. The loans are of short duration with maturities less than one year. (b) C&I loans were converted from revolving to term in 2022 and 2021 were not material. (c) Balances include PPP loans. CRE PORTFOLIO June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Revolving Revolving Loans Converted to Term Loans Total Credit Quality Indicator: Pass (PD grades 1 through 12) $ 1,531 $ 3,065 $ 1,651 $ 2,300 $ 1,071 $ 3,035 $ 243 $ 15 $ 12,911 Special Mention (PD grade 13) — — — — — 19 — — 19 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) — — — — 1 — 11 — 12 Total CRE loans $ 1,531 $ 3,065 $ 1,651 $ 2,300 $ 1,072 $ 3,054 $ 254 $ 15 $ 12,942 December 31, 2021 (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Loans Converted to Term Loans Total Credit Quality Indicator: Pass (PD grades 1 through 12) $ 3,441 $ 2,065 $ 2,514 $ 929 $ 691 $ 1,822 $ 204 $ — $ 11,666 Special Mention (PD grade 13) 4 26 52 125 20 65 — — 292 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 47 — 24 3 33 32 12 — 151 Total CRE loans $ 3,492 $ 2,091 $ 2,590 $ 1,057 $ 744 $ 1,919 $ 216 $ — $ 12,109 The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan types, FHN is able to utilize the FICO score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio. The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for consumer real estate loans as of June 30, 2022 and December 31, 2021. Within consumer real estate, classes include HELOC and real estate installment loans. HELOCs are loans which during their draw period are classified as revolving loans. Once the draw period ends and the loan enters its repayment period, the loan converts to a term loan and is classified as a revolving loan converted to a term loan. All loans classified in the following tables as revolving loans or revolving loans converted to term loans are HELOCs. Real estate installment loans are originated as fixed term loans and are classified below in their vintage year. All loans in the following tables classified in a vintage year are real estate installment loans. CONSUMER REAL ESTATE PORTFOLIO June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Revolving Revolving Total FICO score 740 or greater $ 1,290 $ 1,928 $ 878 $ 568 $ 305 $ 1,404 $ 1,100 $ 75 $ 7,548 FICO score 720-739 177 267 120 105 38 250 172 21 1,150 FICO score 700-719 157 220 101 62 40 226 149 26 981 FICO score 660-699 117 141 93 62 66 298 204 26 1,007 FICO score 620-659 10 27 27 45 21 111 56 10 307 FICO score less than 620 13 19 30 13 25 270 61 17 448 Total $ 1,764 $ 2,602 $ 1,249 $ 855 $ 495 $ 2,559 $ 1,742 $ 175 $ 11,441 December 31, 2021 (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Loans Converted to Term Loans (a) Total FICO score 740 or greater $ 1,594 $ 1,156 $ 825 $ 473 $ 394 $ 1,335 $ 1,086 $ 115 $ 6,978 FICO score 720-739 236 171 109 61 44 209 162 21 1,013 FICO score 700-719 143 112 81 68 45 153 141 23 766 FICO score 660-699 164 131 120 106 44 246 204 44 1,059 FICO score 620-659 42 36 55 23 13 118 66 27 380 FICO score less than 620 26 84 42 32 45 272 42 33 576 Total $ 2,205 $ 1,690 $ 1,232 $ 763 $ 585 $ 2,333 $ 1,701 $ 263 $ 10,772 (a) $3 million and $43 million of HELOC loans were converted from revolving to term in 2022 and 2021, respectively. The following tables reflect the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of June 30, 2022 and December 31, 2021. CREDIT CARD & OTHER PORTFOLIO June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Revolving Revolving Total FICO score 740 or greater $ 26 $ 20 $ 17 $ 11 $ 4 $ 16 $ 295 $ 7 $ 396 FICO score 720-739 5 3 2 2 1 1 39 1 54 FICO score 700-719 4 4 2 1 1 1 37 1 51 FICO score 660-699 8 2 2 1 2 2 39 1 57 FICO score 620-659 3 2 1 — 1 1 19 — 27 FICO score less than 620 71 7 6 10 7 6 177 1 285 Total $ 117 $ 38 $ 30 $ 25 $ 16 $ 27 $ 606 $ 11 $ 870 December 31, 2021 (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Loans Converted to Term Loans (a) Total FICO score 740 or greater $ 56 $ 35 $ 29 $ 23 $ 13 $ 56 $ 200 $ 11 $ 423 FICO score 720-739 14 5 4 3 4 17 46 3 96 FICO score 700-719 8 5 4 4 3 17 42 1 84 FICO score 660-699 25 6 5 6 4 31 98 2 177 FICO score 620-659 4 3 2 4 3 18 22 1 57 FICO score less than 620 24 3 3 4 4 16 18 1 73 Total $ 131 $ 57 $ 47 $ 44 $ 31 $ 155 $ 426 $ 19 $ 910 (a) $1 million and $9 million of other consumer loans were converted from revolving to term in 2022 and 2021, respectively. Nonaccrual and Past Due Loans and Leases Loans and leases are placed on nonaccrual if it becomes evident that full collection of principal and interest is at risk, impairment has been recognized as a partial charge-off of principal balance due to insufficient collateral value and past due status, or on a case-by-case basis if FHN continues to receive payments but there are other borrower-specific issues. Included in nonaccrual are loans for which FHN continues to receive payments including residential real estate loans where the borrower has been discharged of personal obligation through bankruptcy. Past due loans are loans contractually past due as to interest or principal payments, but which have not yet been put on nonaccrual status. In accordance with revised Interagency Guidance issued in 2020, FHN is not required to designate loans with deferrals granted in response to COVID-19 as past due because of such deferrals. If a borrower defers payment, this may result in no contractual payments being past due, and as such, loans would not be considered past due during the period of deferral, and as a result, are excluded from loans past due 30-89 days and loans 90+ days past due in the tables below. The following table reflects accruing and non-accruing loans and leases by class on June 30, 2022 and December 31, 2021: ACCRUING & NON-ACCRUING LOANS AND LEASES June 30, 2022 Accruing Non-Accruing (Dollars in millions) Current 30-89 90+ Total Current 30-89 90+ Total Total Commercial, financial, and industrial: C&I (a) $ 27,678 $ 28 $ — $ 27,706 $ 80 $ — $ 49 $ 129 $ 27,835 Loans to mortgage companies 3,441 — — 3,441 — — — — 3,441 Total commercial, financial, and industrial 31,119 28 — 31,147 80 — 49 129 31,276 Commercial real estate: CRE (b) 12,903 28 — 12,931 9 — 2 11 12,942 Consumer real estate: HELOC (c) 1,857 9 6 1,872 34 2 9 45 1,917 Real estate installment loans (d) 9,367 35 8 9,410 56 9 49 114 9,524 Total consumer real estate 11,224 44 14 11,282 90 11 58 159 11,441 Credit card and other: Credit card 272 3 3 278 — — — — 278 Other 587 3 — 590 2 — — 2 592 Total credit card and other 859 6 3 868 2 — — 2 870 Total loans and leases $ 56,105 $ 106 $ 17 $ 56,228 $ 181 $ 11 $ 109 $ 301 $ 56,529 December 31, 2021 Accruing Non-Accruing (Dollars in millions) Current 30-89 90+ Total Current 30-89 90+ Total Total Commercial, financial, and industrial: C&I (a) $ 26,367 $ 53 $ 5 $ 26,425 $ 97 $ 1 $ 27 $ 125 $ 26,550 Loans to mortgage companies 4,518 — — 4,518 — — — — 4,518 Total commercial, financial, and industrial 30,885 53 5 30,943 97 1 27 125 31,068 Commercial real estate: CRE (b) 12,087 13 — 12,100 6 1 2 9 12,109 Consumer real estate: HELOC (c) 1,906 7 6 1,919 34 2 9 45 1,964 Real estate installment loans (d) 8,658 30 27 8,715 44 3 46 93 8,808 Total consumer real estate 10,564 37 33 10,634 78 5 55 138 10,772 Credit card and other: Credit card 292 2 2 296 — — — — 296 Other 608 3 — 611 1 — 2 3 614 Total credit card and other 900 5 2 907 1 — 2 3 910 Total loans and leases $ 54,436 $ 108 $ 40 $ 54,584 $ 182 $ 7 $ 86 $ 275 $ 54,859 (a) $123 million and $99 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2022 and 2021, respectively. (b) $6 million and $5 million of CRE loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2022 and 2021, respectively. (c) $6 million and $7 million of HELOC loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2022 and 2021, respectively. (d) $8 million and $50 million of real estate installment loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2022 and 2021, respectively. Collateral-Dependent Loans Collateral-dependent loans are defined as loans for which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty. At a minimum, the estimated value of the collateral for each loan equals the current book value. As of June 30, 2022 and December 31, 2021, FHN had commercial loans with amortized cost of approximately $98 million and $120 million, respectively, that were based on the value of underlying collateral. Collateral-dependent C&I and CRE loans totaled $91 million and $7 million, respectively, at June 30, 2022. The collateral for these loans generally consists of business assets including land, buildings, equipment and financial assets. During the three and six months ended June 30, 2022, FHN recognized charge-offs of less than $1 million and of $4 million, respectively, on these loans related to reductions in estimated collateral values. Consumer HELOC and real estate installment loa ns with amortized cost based on the va lue of underlying real estate collateral were approximately $8 million and $34 million, respectively, as of June 30, 2022 and $7 million and $20 million, respectively, as of December 31, 2021. Charge-offs during the three and six months ended June 30, 2022 were $2 million for collateral-dependent consumer loans and were not significant for the three and six months ended June 30, 2021. Troubled Debt Restructurings As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR. In accordance with regulatory guidance, certain loan modifications that might ordinarily have qualified as TDRs were not accounted for as TDRs and have been excluded from the disclosures below. For loan modifications that were made during the year ended December 31, 2021 that met the TDR relief provisions outlined in either the CARES Act, as extended by the CAA, or revised Interagency Guidance, FHN has excluded these modifications from consideration as TDRs, and has excluded loans with these qualifying modifications from designation as TDRs in the information and discussion that follows. On June 30, 2022 and December 31, 2021, FHN had $199 million and $206 million, respectively, of portfolio loans classified as TDRs. Additionally, $32 million and $35 million of loans held for sale as of June 30, 2022 and December 31, 2021, respectively, were classified as TDRs. The following table presents the end of period balance for loans modified in a TDR during the periods indicated: LOANS MODIFIED IN A TDR Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (Dollars in millions) Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment C&I — $ — $ — 10 $ 19 $ 19 CRE — — — — — — HELOC 42 3 3 7 — — Real estate installment loans 95 24 24 26 6 6 Credit card and other 8 — — 15 — — Total TDRs 145 $ 27 $ 27 58 $ 25 $ 25 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (Dollars in millions) Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment C&I 3 $ — $ — 27 $ 28 $ 27 CRE — — — 1 12 10 HELOC 56 5 5 19 2 2 Real estate installment loans 181 40 40 35 8 8 Credit card and other 9 — — 28 — — Total TDRs 249 $ 45 $ 45 110 $ 50 $ 47 The following table presents TDRs which re-defaulted during the three and six months ended June 30, 2022 and 2021, a nd as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due. LOANS MODIFIED IN A TDR THAT RE-DEFAULTED Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (Dollars in millions) Number Recorded Number Recorded C&I 2 $ — 5 $ 1 CRE — — 2 9 HELOC — — — — Real estate installment loans 6 1 4 1 Credit card and other 1 — 1 — Total TDRs 9 $ 1 12 $ 11 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (Dollars in millions) Number Recorded Number Recorded C&I 5 $ — 12 $ 2 CRE — — 2 9 HELOC — — 1 — Real estate installment loans 6 1 7 3 Credit card and other 9 — 1 — Total TDRs 20 $ 1 23 $ 14 |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Management's estimate of expected credit losses in the loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments, collectively referred to as the Allowance for Credit Losses, or the ACL. The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the allowance for loan and lease losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Income as provision for credit losses. The ACL is maintained at a level management believes to be appropriate to absorb expected lifetime credit losses over the contractual life of the loan and lease portfolio and unfunded lending commitments. The determination of the ACL is based on periodic evaluation of the loan and lease portfolios and unfunded lending commitments considering a number of relevant underlying factors, including key assumptions and evaluation of quantitative and qualitative information. The expected loan losses are the product of multiplying FHN’s estimates of probability of default (PD), loss given default (LGD), and individual loan level exposure as default (EAD), including amortization and prepayment assumptions, on an undiscounted basis. FHN uses models or assumptions to develop the expected loss forecasts, which incorporate multiple macroeconomic forecasts over a four-year reasonable and supportable forecast period. After the reasonable and supportable forecast period, the Company immediately reverts to its historical loss averages, evaluated over the historical observation period, for the remaining estimated life of the loans. In order to capture the unique risks of the loan portfolio within the PD, LGD, and prepayment models, FHN segments the portfolio into pools, generally incorporating loan grades for commercial loans. As there can be no certainty that actual economic performance will precisely follow any specific macroeconomic forecast, FHN uses qualitative adjustments to adjust historical loss information in situations where current loan characteristics differ from those in the historical loss information and for differences in economic conditions and other factors. The evaluation of quantitative and qualitative information is performed through assessments of groups of assets that share similar risk characteristics and certain individual loans and leases that do not share similar risk characteristics with the collective group. As described in Note 3 - Loans and Leases, loans are grouped generally by product type and significant loan portfolios are assessed for credit losses using analytical or statistical models. The quantitative evaluation of the adequacy of the ACL utilizes a weighting approach for multiple economic forecast scenarios as its foundation, and is primarily based on analytical models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. The ACL may also be affected by a variety of qualitative factors that FHN considers to reflect current judgment of various events and risks that are not measured in the quantitative calculations. In accordance with its accounting policy elections, FHN does not recognize a separate allowance for expected credit losses for AIR and records reversals of AIR as reductions of interest income. FHN reverses previously accrued but uncollected interest when an asset is placed on nonaccrual status. As of June 30, 2022 and December 31, 2021, FHN recognized less than $1 million in allowance for expected credit losses on COVID-19 deferrals that do not qualify for the election which is not reflected in the table below. AIR and the related allowance for expected credit losses is included as a component of other assets. The total amount of interest reversals from loans placed on nonaccrual status and the amount of income recognized on nonaccrual loans during the three and six months ended June 30, 2022 and 2021 were not material. Expected credit losses for unfunded commitments are estimated for periods where the commitment is not unconditionally cancellable. The measurement of expected credit losses for unfunded commitments mirrors that of loans and leases with the additional estimate of future draw rates (timing and amount). The ACL balance as of June 30, 2022 reflects the continued decrease in the unfavorable impact of COVID-19, offset by potential economic instability projected in the macroeconomic forecasts resulting from inflation and interest rate increases, as well as the impact of loan growth. In developing credit loss estimates for its loan and lease portfolios, FHN utilized multiple Moody’s forecast scenarios for its macroeconomic inputs. During the three and six months ended June 30, 2022, FHN's scenario selection process gave consideration to key economic drivers such as inflation, interest rate increases, supply chain disruptions, the labor markets, and to a lesser extent the Russia/Ukraine conflict and the COVID-19 pandemic. FHN selected one scenario as its base case, which was the Moody's baseline scenario. The heaviest weight was placed on the base case forecast, which assumed positive real GDP growth over the forecast horizon. During the year ended December 31, 2021, FHN considered stressed loan portfolios or industries that are most exposed to the effects of the COVID-19 pandemic, and added qualitative adjustments, where needed, to account for the risks not captured in modeled results. Management also made qualitative adjustments to reflect estimated recoveries based on a review of prior charge off and recovery levels, for default risk associated with large balances with individual borrowers, for estimated loss amounts not reflected in historical factors due to specific portfolio risk, and for instances where limited data for acquired loans is considered to affect modeled results. The following table provides a rollforward of the ALLL and the reserve for unfunded lending commitments by portfolio type for the three and six months ended June 30, 2022 and 2021: ROLLFORWARD OF ALLL & RESERVE FOR UNFUNDED LENDING COMMITMENTS (Dollars in millions) Commercial, Financial, and Industrial (a) Commercial Real Estate Consumer Real Estate Credit Card and Other Total Three Months Ended June 30, 2022 Allowance for loan and lease losses: Balance as of April 1, 2022 $ 287 $ 151 $ 164 $ 20 $ 622 Charge-offs (12) — (2) (7) (21) Recoveries 1 1 6 1 9 Provision for loan and lease losses (2) (11) 15 12 14 Balance as of June 30, 2022 $ 274 $ 141 $ 183 $ 26 $ 624 Reserve for remaining unfunded commitments: Balance as of April 1, 2022 43 12 9 — 64 Provision for remaining unfunded commitments 10 5 1 — 16 Balance as of June 30, 2022 53 17 10 — 80 Allowance for credit losses as of June 30, 2022 $ 327 $ 158 $ 193 $ 26 $ 704 Three Months Ended June 30, 2021 Allowance for loan and lease losses: Balance as of April 1, 2021 $ 442 $ 232 $ 222 $ 18 $ 914 Charge-offs (2) — (1) (3) (6) Recoveries 5 1 8 2 16 Provision for loan losses (60) (23) (26) — (109) Balance as of June 30, 2021 $ 385 $ 210 $ 203 $ 17 $ 815 Reserve for remaining unfunded commitments: Balance as of April 1, 2021 $ 62 $ 11 $ 8 $ — $ 81 Provision for remaining unfunded commitments (5) (2) 1 — (6) Balance as of June 30, 2021 $ 57 9 9 — $ 75 Allowance for credit losses as of June 30, 2021 $ 442 $ 219 $ 212 $ 17 $ 890 Six Months Ended June 30, 2022 Allowance for loan and lease losses: Balance as of January 1, 2022 $ 334 $ 154 $ 163 $ 19 $ 670 Charge-offs (25) — (3) (12) (40) Recoveries 4 1 11 2 18 Provision for loan and lease losses (39) (14) 12 17 (24) Balance as of June 30, 2022 $ 274 $ 141 $ 183 $ 26 $ 624 Reserve for remaining unfunded commitments: Balance as of January 1, 2022 $ 46 $ 12 $ 8 $ — $ 66 Provision for remaining unfunded commitments 7 5 2 — 14 Balance as of June 30, 2022 $ 53 $ 17 $ 10 $ — $ 80 Allowance for credit losses as of June 30, 2022 $ 327 $ 158 $ 193 $ 26 $ 704 Six Months Ended June 30, 2021 Allowance for loan and lease losses: Balance as of January 1, 2021 $ 453 $ 242 $ 242 $ 26 $ 963 Charge-offs (16) (3) (4) (6) (29) Recoveries 11 3 14 3 31 Provision for loan and lease losses (63) (32) (49) (6) (150) Balance as of June 30, 2021 $ 385 $ 210 $ 203 $ 17 $ 815 Reserve for remaining unfunded commitments: Balance as of January 1, 2021 $ 65 $ 10 $ 10 $ — $ 85 Provision for remaining unfunded commitments (8) (1) (1) — (10) Balance as of June 30, 2021 57 9 9 — 75 Allowance for credit losses as of June 30, 2021 $ 442 $ 219 $ 212 $ 17 $ 890 (a) C&I loans as of June 30, 2022 and 2021 include $375 million and $3.8 billion in PPP loans, respectively, which due to the government guarantee and forgiveness provisions are considered to have no credit risk and therefore have no allowance for loan and lease losses. |
Mortgage Banking Activity
Mortgage Banking Activity | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Banking [Abstract] | |
Mortgage Banking Activity | Mortgage Banking Activity FHN originates mortgage loans for sale into the secondary market. These loans primarily consist of residential first lien mortgages that conform to standards established by GSEs that are major investors in U.S. home mortgages, but can also consist of junior lien and jumbo loans secured by residential property. These loans are primarily sold to private companies that are unaffiliated with the GSEs on a servicing-released basis. Gains and losses on these mortgage loans are included in mortgage banking and title income on the Consolidated Statements of Income. Prior to the IBKC merger, FHN’s mortgage banking operations were not significant. At June 30, 2022, FHN had approximately $41 million of loans that remained from pre-2009 mortgage business operations of legacy First Horizon. Activity related to the pre-2009 mortgage loans was primarily limited to payments and write-offs in 2022 and 2021, with no new originations or loan sales, and only an insignificant amount of repurchases. These loans are excluded from the disclosure below. The following table summarizes activity relating to residential mortgage loans held for sale as of the six months ended June 30, 2022 and the year ended December 31, 2021. MORTGAGE LOANS HELD FOR SALE (Dollars in millions) June 30, 2022 December 31, 2021 Balance at beginning of period $ 250 $ 409 Originations and purchases 902 2,836 Sales, net of gains (1,018) (3,025) Mortgage loans transferred from (to) held for investment — 30 Balance at end of period $ 134 $ 250 Mortgage Servicing Rights FHN records mortgage servicing rights at the lower of cost or market value and amortizes them over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights are included in other assets on the Consolidated Balance Sheets. Mortgage servicing rights had the following carrying values as of the periods indicated. MORTGAGE SERVICING RIGHTS June 30, 2022 December 31, 2021 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Mortgage servicing rights $ 17 $ (4) $ 13 $ 39 $ (9) $ 30 In addition, there was an insignificant amount of non-mortgage and commercial servicing rights as of June 30, 2022 and December 31, 2021. Total mortgage servicing fees included in mortgage banking and title income were $3 million and $1 million for the six months ended June 30, 2022 and 2021, respectively. Mortgage servicing rights with a net carrying amount of $21 million were sold during the second quarter of 2022 resulting in a gain of $12 million which is included in mortgage banking and title income on the Consolidated Statement of Income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following is a summary of goodwill by reportable segment included in the Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021. GOODWILL (Dollars in millions) Regional Specialty Banking Total December 31, 2020 $ 880 $ 631 $ 1,511 Additions — — — December 31, 2021 $ 880 $ 631 $ 1,511 Additions — — — June 30, 2022 $ 880 $ 631 $ 1,511 FHN performed the required annual goodwill impairment test as of October 1, 2021. The annual impairment test did not indicate impairment in any of FHN’s reporting units as of the testing date. Following the testing date, management evaluated the events and circumstances that could indicate that goodwill might be impaired and concluded that a subsequent interim test was not necessary. Accounting estimates and assumptions were made about FHN's future performance and cash flows, as well as other prevailing market factors (e.g., interest rates, economic trends, etc.) when determining fair value as part of the goodwill impairment test. While management used the best information available to estimate future performance for each reporting unit, future adjustments to management's projections may be necessary if conditions differ substantially from the assumptions used in making the estimates. Other intangible assets The following table, which excludes fully amortized intangibles, presents other intangible assets included in the Consolidated Balance Sheets: OTHER INTANGIBLE ASSETS June 30, 2022 December 31, 2021 (Dollars in millions) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Core deposit intangibles $ 371 $ (150) $ 221 $ 371 $ (128) $ 243 Client relationships 37 (13) 24 37 (11) 26 Other (a) 36 (9) 27 41 (12) 29 Total $ 444 $ (172) $ 272 $ 449 $ (151) $ 298 (a) Includes non-compete covenants and purchased credit card intangible assets. Also includes title plant intangible assets and state banking licenses which are not subject to amortization. |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock The following table presents a summary of FHN's non-cumulative perpetual preferred stock: PREFERRED STOCK (Dollars in millions) June 30, 2022 December 31, 2021 Issuance Date Earliest Redemption Date (a) Annual Dividend Rate Dividend Payments Shares Outstanding Liquidation Amount Carrying Amount Carrying Amount Series B 7/2/2020 8/1/2025 6.625% (b) Semi-annually 8,000 $ 80 $ 77 $ 77 Series C 7/2/2020 5/1/2026 6.600% (c) Quarterly 5,750 58 59 59 Series D 7/2/2020 5/1/2024 6.100% (d) Semi-annually 10,000 100 94 94 Series E 5/28/2020 10/10/2025 6.500% Quarterly 1,500 150 145 145 Series F 5/3/2021 7/10/2026 4.700% Quarterly 1,500 150 145 145 Series G 2/28/2022 2/28/2027 N/A N/A 4,936 494 494 — 31,686 $ 1,032 $ 1,014 $ 520 N/A - not applicable (a) Denotes earliest optional redemption date. Earlier redemption is possible, at FHN's election, if certain regulatory capital events occur. (b) Fixed dividend rate will reset on August 1, 2025 to three-month LIBOR plus 4.262%. (c) Fixed dividend rate will reset on May 1, 2026 to three-month LIBOR plus 4.920%. (d) Fixed dividend rate will reset on May 1, 2024 to three-month LIBOR plus 3.859%. On February 28, 2022, in connection with the execution of the TD Merger Agreement, FHN issued $494 million of Series G Perpetual Convertible Preferred Stock (the Series G Convertible Preferred Stock). The Series G Convertible Preferred Stock is convertible into up to 4.9% of the outstanding shares of FHN common stock in certain circumstances, including closing of the Proposed TD Merger or termination of the TD Merger Agreement. Conversion occurs at a fixed rate of 5,574.136 shares of common stock for each share of Series G Convertible Preferred Stock, or 4,000 shares of common stock if regulatory approval of the Proposed TD Merger is not obtained. For more information on the impact of the convertible features on diluted earnings per share, see Note 9 - Earnings Per Share. The Series G Convertible Preferred Stock is redeemable at FHN's option, in whole or in part, on or after February 28, 2027. Earlier redemption is possible, at FHN's election, if certain regulatory capital events occur. The $494 million carrying value of the Series G Convertible Preferred Stock currently qualifies as Tier 1 Capital. Dividends are payable only in certain circumstances if the TD Merger Agreement is terminated before the shares are converted into common stock. Subsidiary Preferred Stock First Horizon Bank has issued 300,000 shares of Class A Non-Cumulative Perpetual Preferred Stock (Class A Preferred Stock) with a liquidation preference of $1,000 per share. Dividends on the Class A Preferred Stock, if declared, accrue and are payable each quarter, in arrears, at a floating rate equal to the greater of the three month LIBOR plus 0.85% or 3.75% per annum. These securities qualify fully as Tier 1 capital for both First Horizon Bank and FHN. On June 30, 2022 and December 31, 2021, $295 million of Class A Preferred Stock was recognized as noncontrolling interest on the Consolidated Balance Sheets. |
Components of Other Comprehensi
Components of Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Other Comprehensive Income (Loss) | Components of Other Comprehensive Income (Loss) The following table provides the changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2022 and 2021: ACCUMULATED OTHER COMPREHENSIVE INCOME (Dollars in millions) Securities AFS Cash Flow Hedges Pension and Total Balance as of April 1, 2022 $ (440) $ (18) $ (253) $ (711) Net unrealized gains (losses) (231) (25) — (256) Amounts reclassified from AOCI — 3 1 4 Other comprehensive income (loss) (231) (22) 1 (252) Balance as of June 30, 2022 $ (671) $ (40) $ (252) $ (963) (Dollars in millions) Securities AFS Cash Flow Hedges Pension and Total Balance as of January 1, 2022 $ (36) $ 3 $ (255) $ (288) Net unrealized gains (losses) (635) (45) — (680) Amounts reclassified from AOCI — 2 3 5 Other comprehensive income (loss) (635) (43) 3 (675) Balance as of June 30, 2022 $ (671) $ (40) $ (252) $ (963) (Dollars in millions) Securities AFS Cash Flow Hedges Pension and Total Balance as of April 1, 2021 $ 5 $ 10 $ (256) $ (241) Net unrealized gains (losses) 38 — — 38 Amounts reclassified from AOCI — (2) 2 — Other comprehensive income (loss) 38 (2) 2 38 Balance as of June 30, 2021 $ 43 $ 8 $ (254) $ (203) (Dollars in millions) Securities AFS Cash Flow Hedges Pension and Total Balance as of January 1, 2021 $ 108 $ 12 $ (260) $ (140) Net unrealized gains (losses) (65) (1) 3 (63) Amounts reclassified from AOCI — (3) 3 — Other comprehensive income (loss) (65) (4) 6 (63) Balance as of June 30, 2021 $ 43 $ 8 $ (254) $ (203) Reclassifications from AOCI, and related tax effects, were as follows: RECLASSIFICATIONS FROM AOCI (Dollars in millions) Three Months Ended Six Months Ended Details about AOCI 2022 2021 2022 2021 Affected line item in the statement where net Cash Flow Hedges: Realized (gains) losses on cash flow hedges $ 4 $ (2) $ 3 $ (4) Interest and fees on loans and leases Tax expense (benefit) (1) — (1) 1 Income tax expense 3 (2) 2 (3) Pension and Postretirement Plans: Amortization of prior service cost and net actuarial (gain) loss 2 2 4 4 Other expense Tax expense (benefit) (1) — (1) (1) Income tax expense 1 2 3 3 Total reclassification from AOCI $ 4 $ — $ 5 $ — |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computations of basic and diluted earnings per common share were as follows: EARNINGS PER SHARE COMPUTATIONS Three Months Ended Six Months Ended (Dollars in millions, except per share data; shares in thousands) 2022 2021 2022 2021 Net income $ 177 $ 311 $ 374 $ 546 Net income attributable to noncontrolling interest 3 3 6 6 Net income attributable to controlling interest 174 308 368 540 Preferred stock dividends 8 13 16 21 Net income available to common shareholders $ 166 $ 295 $ 352 $ 519 Weighted average common shares outstanding—basic 534,604 550,297 533,915 551,268 Effect of dilutive restricted stock, performance equity awards and options 7,319 5,913 7,223 5,230 Effect of dilutive convertible preferred stock (a) 27,512 — 18,696 — Weighted average common shares outstanding—diluted 569,435 556,210 559,834 556,498 Basic earnings per common share $ 0.31 $ 0.54 $ 0.66 $ 0.94 Diluted earnings per common share $ 0.29 $ 0.53 $ 0.63 $ 0.93 (a) During the first quarter of 2022, FHN issued $494 million of Series G Convertible Preferred Stock, which is convertible into common stock upon completion of the Proposed TD Merger or the termination of the TD Merger Agreement. For more information on the convertible features, including the conversion rate, see Note 7 - Preferred Stock. The following table presents average outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met: ANTI-DILUTIVE EQUITY AWARDS Three Months Ended Six Months Ended (Shares in thousands) 2022 2021 2022 2021 Stock options excluded from the calculation of diluted EPS 23 1,516 48 1,544 Weighted average exercise price of stock options excluded from the calculation of diluted EPS $ 27.88 $ 20.98 $ 25.60 $ 20.97 Other equity awards excluded from the calculation of diluted EPS 1,892 1,379 1,231 1,387 |
Contingencies and Other Disclos
Contingencies and Other Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Other Disclosures | Contingencies and Other Disclosures Contingencies Contingent Liabilities Overview Contingent liabilities arise in the ordinary course of business. Often they are related to lawsuits, arbitration, mediation, and other forms of litigation. Various litigation matters currently are threatened or pending against FHN and its subsidiaries. Also, FHN at times receives requests for information, subpoenas, or other inquiries from federal, state, and local regulators, from other government authorities, and from other parties concerning various matters relating to FHN’s current or former businesses. Certain matters of that sort are pending at most times, and FHN generally cooperates when those matters arise. Pending and threatened litigation matters sometimes are settled by the parties, and sometimes pending matters are resolved in court or before an arbitrator, or are withdrawn. Regardless of the manner of resolution, frequently the most significant changes in status of a matter occur over a short time period, often following a lengthy period of little substantive activity. In view of the inherent difficulty of predicting the outcome of these matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories or involve a large number of parties, or where claims or other actions may be possible but have not been brought, FHN cannot reasonably determine what the eventual outcome of the matters will be, what the timing of the ultimate resolution of these matters may be, or what the eventual loss or impact related to each matter may be. FHN establishes a loss contingency liability for a litigation matter when loss is both probable and reasonably estimable as prescribed by applicable financial accounting guidance. If loss for a matter is probable and a range of possible loss outcomes is the best estimate available, accounting guidance requires a liability to be established at the low end of the range. Based on current knowledge, and after consultation with counsel, management is of the opinion that loss contingencies related to threatened or pending litigation matters should not have a material adverse effect on the consolidated financial condition of FHN but may be material to FHN’s operating results for any particular reporting period depending, in part, on the results from that period. Material Loss Contingency Matters Summary As used in this Note, except for matters that are reported as having been substantially settled or otherwise substantially resolved, FHN's “material loss contingency matters” generally fall into at least one of the following categories: (i) FHN has determined material loss to be probable and has established a material loss liability in accordance with applicable financial accounting guidance; (ii) FHN has determined material loss to be probable but is not reasonably able to estimate an amount or range of material loss liability; or (iii) FHN has determined that material loss is not probable but is reasonably possible, and the amount or range of that reasonably possible material loss is estimable. As defined in applicable accounting guidance, loss is reasonably possible if there is more than a remote chance of a material loss outcome for FHN. FHN provides contingencies note disclosures for certain pending or threatened litigation matters each quarter, including all matters mentioned in categories (i) or (ii) and, occasionally, certain matters mentioned in category (iii). In addition, in this Note, certain other matters, or groups of matters, are discussed relating to FHN’s pre-2009 mortgage origination and servicing businesses. In all litigation matters discussed in this Note, unless settled or otherwise resolved, FHN believes it has meritorious defenses and intends to pursue those defenses vigorously. FHN reassesses the liability for litigation matters each quarter as the matters progress. At June 30, 2022, the aggregate amount of liabilities established for all such loss contingency matters was $7 million. These liabilities are separate from those discussed under the heading Mortgage Loan Repurchase and Foreclosure Liability below. In each material loss contingency matter, except as otherwise noted, there is more than a remote chance that any of the following outcomes will occur: the plaintiff will substantially prevail; the defense will substantially prevail; the plaintiff will prevail in part; or the matter will be settled by the parties. At June 30, 2022, FHN estimates that for all material loss contingency matters, estimable reasonably possible losses in future periods in excess of currently established liabilities could aggregate in a range from zero to less than $1 million. As a result of the general uncertainties discussed above and the specific uncertainties discussed for each matter mentioned below, it is possible that the ultimate future loss experienced by FHN for any particular matter may materially exceed the amount, if any, of currently established liability for that matter. Material Matters At June 30, 2022, no pending or known threatened matters were material loss contingency matters, as described above. Exposures from pre-2009 Mortgage Business FHN is contending with indemnification claims related to "other whole loans sold," which were mortgage loans originated by FHN before 2009 and sold outside of a securitization organized by FHN. These claims generally assert that FHN-originated loans contributed to losses in connection with mortgage loans securitized by the buyer of the loans. The claims generally do not include specific deficiencies for specific loans sold by FHN. Instead, the claims generally assert that FHN is liable for a share of the claimant's loss estimated by assessing the totality of the other whole loans sold by FHN to claimant in relation to the totality of the larger number of loans securitized by claimant. FHN is unable to estimate an RPL range for these matters due to significant uncertainties regarding: the number of, and the facts underlying, the loan originations which claimants assert are indemnifiable; the applicability of FHN’s contractual indemnity covenants to those facts and originations; and, in those cases where an indemnity claim may be supported, whether any legal defenses, counterclaims, other counter-positions, or third-party claims might eliminate or reduce claims against FHN or their impact on FHN. FHN also has indemnification claims related to servicing obligations. The most significant is from Nationstar Mortgage LLC, currently doing business as “Mr. Cooper.” Nationstar was the purchaser of FHN’s mortgage servicing obligations and assets in 2013 and 2014 and, was FHN’s subservicer. Nationstar asserts several categories of indemnity obligations in connection with mortgage loans under the subservicing arrangement and under the purchase transaction. This matter currently is not in litigation, but litigation in the future is possible. FHN is unable to estimate an RPL range for this matter due to significant uncertainties regarding: the exact nature of each of Nationstar’s claims and its position in respect of each; the number of, and the facts underlying, the claimed instances of indemnifiable events; the applicability of FHN’s contractual indemnity covenants to those facts and events; and, in those cases where the facts and events might support an indemnity claim, whether any legal defenses, counterclaims, other counter-positions, or third-party claims might eliminate or reduce claims against FHN or their impact on FHN. FHN has additional potential exposures related to its pre-2009 mortgage businesses. A few of those matters have become litigation which FHN currently estimates are immaterial, some are non-litigation claims or threats, some are mere subpoenas or other requests for information, and in some areas FHN has no indication of any active or threatened dispute. Some of those matters might eventually result in settlements, and some might eventually result in adverse litigation outcomes, but none are included in the material loss contingency liabilities mentioned above or in the RPL range mentioned above. Mortgage Loan Repurchase and Foreclosure Liability FHN’s repurchase and foreclosure liability, primarily related to its pre-2009 mortgage businesses, is comprised of accruals to cover estimated loss content in the active pipeline (consisting of mortgage loan repurchase, make-whole, foreclosure/servicing demands and certain related exposures), estimated future inflows, and estimated loss content related to certain known claims not currently included in the active pipeline. FHN compares the estimated probable incurred losses determined under the applicable loss estimation approaches for the respective periods with current reserve levels. Changes in the estimated required liability levels are recorded as necessary through the repurchase and foreclosure provision. Based on currently available information and experience to date, FHN has evaluated its loan repurchase, make-whole, foreclosure, and certain related exposures and has accrued for losses of $17 million as of both June 30, 2022 and December 31, 2021. Accrued liabilities for FHN’s estimate of these obligations are reflected in other liabilities on the Consolidated Balance Sheets. Charges/expense reversals to increase/decrease the liability are included within other income on the Consolidated Statements of Income. The estimates are based upon currently available information and fact patterns that exist as of each balance sheet date and could be subject to future changes. Changes to any one of these factors could significantly impact the estimate of FHN’s liability. Other Disclosures Indemnification Agreements and Guarantees In the ordinary course of business, FHN enters into indemnification agreements for legal proceedings against its directors and officers and standard representations and warranties for underwriting agreements, merger and acquisition agreements, loan sales, contractual commitments, and various other business transactions or arrangements. The extent of FHN’s obligations under these agreements depends upon the occurrence of future events; therefore, it is not possible to estimate a maximum potential amount of payouts that could be required by such agreements. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits, Description [Abstract] | |
Retirement Plans | Retirement Plans FHN sponsors a noncontributory, qualified defined benefit pension plan to employees hired or re-hired on or before September 1, 2007. Pension benefits are based on years of service, average compensation near retirement or other termination, and estimated social security benefits at age 65. Benefits under the plan are “frozen” so that years of service and compensation changes after 2012 do not affect the benefit owed. Minimum contributions are based upon actuarially determined amounts necessary to fund the total benefit obligation. Decisions to contribute to the plan are based upon pension funding requirements under the Pension Protection Act, the maximum amount deductible under the Internal Revenue Code, the actual performance of plan assets, and trends in the regulatory environment. FHN made a contribution of $6 million to the qualified pension plan in 2021. Management does not currently anticipate that FHN will make a contribution to the qualified pension plan in 2022. FHN also maintains non-qualified plans including a supplemental retirement plan that covers certain employees whose benefits under the qualified pension plan have been limited by tax rules. These other non-qualified plans are unfunded, and contributions to these plans cover all benefits paid under the non-qualified plans. Payments made under the non-qualified plans were $5 million for 2021. FHN anticipates making benefit payments under the non-qualified plans of $5 million in 2022. Service cost is included in personnel expense in the Consolidated Statements of Income. All other components of net periodic benefit cost are included in other expense. For more information on FHN's pension plan and other postretirement benefit plans, see Note 18 - Retirement Plans and Other Employee Benefits in FHN's 2021 Annual Report on Form 10-K, as amended. The components of net periodic benefit cost for the three and six months ended June 30 were as follows: COMPONENTS OF NET PERIODIC BENEFIT COST Three months ended June 30, Six months ended June 30, (Dollars in millions) 2022 2021 2022 2021 Components of net periodic benefit cost Interest cost $ 5 $ 4 $ 10 $ 8 Expected return on plan assets (6) (4) (12) (8) Amortization of unrecognized: Actuarial (gain) loss 2 2 4 4 Other — — — 2 Net periodic benefit cost $ 1 $ 2 $ 2 $ 6 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information FHN's operating segments are composed of the following: • Regional Banking segment offers financial products and services, including traditional lending and deposit taking, to consumer and commercial clients primarily in the southern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer clients. • Specialty Banking segment consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, and international banking. Additionally, Specialty Banking has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales. • Corporate segment consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. The Corporate segment also includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses. Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented. The following tables present financial information for each reportable business segment for the three and six months ended June 30, 2022 and 2021: SEGMENT FINANCIAL INFORMATION Three Months Ended June 30, 2022 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 465 $ 141 $ (64) $ 542 Provision for credit losses 52 (18) (4) 30 Noninterest income 114 96 (9) 201 Noninterest expense (a) 297 116 75 488 Income (loss) before income taxes 230 139 (144) 225 Income tax expense (benefit) 54 34 (40) 48 Net income (loss) $ 176 $ 105 $ (104) $ 177 Average assets $ 41,952 $ 20,227 $ 24,147 $ 86,326 Three Months Ended June 30, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 444 $ 153 $ (100) $ 497 Provision for credit losses (88) (21) (6) (115) Noninterest income 109 149 27 285 Noninterest expense (a) 270 145 83 498 Income (loss) before income taxes 371 178 (150) 399 Income tax expense (benefit) 87 43 (42) 88 Net income (loss) $ 284 $ 135 $ (108) $ 311 Average assets $ 42,352 $ 20,104 $ 25,103 $ 87,559 (a) 2022 and 2021 includes $38 million and $32 million, respectively, in merger and integration expenses related to the IBKC merger and Proposed TD Merger in the Corporate segment. Six Months Ended June 30, 2022 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 891 $ 285 $ (155) $ 1,021 Provision for credit losses 21 (21) (10) (10) Noninterest income 227 201 2 430 Noninterest expense (a) 598 252 132 982 Income (loss) before income taxes 499 255 (275) 479 Income tax expense (benefit) 117 62 (74) 105 Net income (loss) $ 382 $ 193 $ (201) $ 374 Average assets $ 41,251 $ 20,236 $ 25,963 $ 87,450 Six Months Ended June 30, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 875 $ 312 $ (183) $ 1,004 Provision for credit losses (117) (28) (15) (160) Noninterest income 210 335 38 583 Noninterest expense (a) 545 303 194 1,042 Income (loss) before income taxes 657 372 (324) 705 Income tax expense (benefit) 153 90 (84) 159 Net income (loss) $ 504 $ 282 $ (240) $ 546 Average assets $ 42,451 $ 20,825 $ 23,210 $ 86,486 (a) 2022 and 2021 includes $75 million and $102 million, respectively, in merger and integration expenses related to the IBKC merger and Proposed TD Merger in the Corporate segment. The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three and six months ended June 30, 2022 and 2021: NONINTEREST INCOME DETAIL BY SEGMENT Three months ended June 30, 2022 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ — $ 51 $ — $ 51 Deposit transactions and cash management 38 2 2 42 Mortgage banking and title income — 34 — 34 Brokerage, management fees and commissions 24 — — 24 Card and digital banking fees 21 — 2 23 Other service charges and fees 9 6 — 15 Trust services and investment management 12 — — 12 Deferred compensation income — — (17) (17) Other income (c) 10 3 4 17 Total noninterest income $ 114 $ 96 $ (9) $ 201 Three months ended June 30, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ — $ 102 $ — $ 102 Deposit transactions and cash management 39 3 2 44 Mortgage banking and title income — 38 — 38 Brokerage, management fees and commissions 21 — — 21 Card and digital banking fees 18 1 2 21 Other service charges and fees 6 4 1 11 Trust services and investment management 14 — — 14 Securities gains (losses), net (b) — — 11 11 Deferred compensation income — — 7 7 Other income (c) 11 1 4 16 Total noninterest income $ 109 $ 149 $ 27 $ 285 (a) 2022 and 2021 includes $10 million and $14 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b) Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c) Includes letter of credit fees and insurance commissions in scope of ASC 606. Six Months Ended June 30, 2022 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ — $ 124 $ — $ 124 Deposit transactions and cash management 77 5 4 86 Mortgage banking and title income — 56 — 56 Brokerage, management fees and commissions 48 — — 48 Card and digital banking fees 38 1 4 43 Other service charges and fees 16 11 1 28 Trust services and investment management 25 — — 25 Securities gains (losses), net (b) — — 6 6 Deferred compensation income — — (21) (21) Other income (c) 23 4 8 35 Total noninterest income $ 227 $ 201 $ 2 $ 430 Six Months Ended June 30, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ 1 $ 227 $ — $ 228 Deposit transactions and cash management 77 6 3 86 Mortgage banking and title income — 90 1 91 Brokerage, management fees and commissions 41 — — 41 Card and digital banking fees 32 2 4 38 Other service charges and fees 12 7 2 21 Trust services and investment management 26 — — 26 Securities gains (losses), net (b) — — 11 11 Deferred compensation income — — 9 9 Other income (c) 21 3 8 32 Total noninterest income $ 210 $ 335 $ 38 $ 583 (a) 2022 and 2021 includes $21 million and $24 million for 2022 and 2021, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b) Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c) Includes letter of credit fees and insurance commissions in scope of ASC 606. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities FHN makes equity investments in various entities that are considered VIEs, as defined by GAAP. A VIE typically does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity's net assets. FHN consolidates a VIE if FHN is the primary beneficiary of the entity. FHN is the primary beneficiary of a VIE if FHN's variable interest provides it with the power to direct the activities that most significantly impact the VIE and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to the VIE. To determine whether or not a variable interest held could potentially be significant to the VIE, FHN considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE. FHN assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. Consolidated Variable Interest Entities FHN has established certain rabbi trusts related to deferred compensation plans offered to its employees. FHN contributes employee cash compensation deferrals to the trusts and directs the underlying investments made by the trusts. The assets of these trusts are available to FHN’s creditors only in the event that FHN becomes insolvent. These trusts are considered VIEs as there is no equity at risk in the trusts since FHN provided the equity interest to its employees in exchange for services rendered. FHN is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities that most significantly impact the economic performance of the rabbi trusts through its ability to direct the underlying investments made by the trusts. Additionally, FHN could potentially receive benefits or absorb losses that are significant to the trusts due to its right to receive any asset values in excess of liability payoffs and its obligation to fund any liabilities to employees that are in excess of a rabbi trust’s assets. The following table summarizes the carrying value of assets and liabilities associated with rabbi trusts used for deferred compensation plans which are consolidated by FHN as of June 30, 2022 and December 31, 2021: CONSOLIDATED VIEs (Dollars in millions) June 30, 2022 December 31, 2021 Assets: Other assets $ 183 $ 205 Liabilities: Other liabilities $ 157 $ 179 Nonconsolidated Variable Interest Entities Low Income Housing Tax Credit Partnerships Through designated wholly-owned subsidiaries, First Horizon Bank makes equity investments as a limited partner in various partnerships that sponsor affordable housing projects utilizing the LIHTC. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. LIHTC partnerships are managed by unrelated general partners that have the power to direct the activities which most significantly affect the performance of the partnerships. FHN is therefore not the primary beneficiary of any LIHTC partnerships. Accordingly, FHN does not consolidate these VIEs and accounts for these investments in other assets on the Consolidated Balance Sheets. FHN accounts for all qualifying LIHTC investments under the proportional amortization method. Under this method an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance as a component of income tax expense. LIHTC investments that do not qualify for the proportional amortization method are accounted for using the equity method. Expenses associated with non-qualifying LIHTC investments were not material for the three and six months ended June 30, 2022 and 2021. The following table summarizes the impact to income tax expense on the Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 for LIHTC investments accounted for under the proportional amortization method. LIHTC IMPACTS ON TAX EXPENSE Three Months Ended Six Months Ended (Dollars in millions) 2022 2021 2022 2021 Income tax expense (benefit): Amortization of qualifying LIHTC investments $ 11 $ 9 $ 21 $ 17 Low income housing tax credits (12) (8) (23) (17) Other tax benefits related to qualifying LIHTC investments (3) (3) (5) (5) Other Tax Credit Investments Through designated subsidiaries, First Horizon Bank periodically makes equity investments as a non-managing member in various LLCs that sponsor community development projects utilizing the NMTC. First Horizon Bank also makes equity investments as a limited partner or non-managing member in entities that receive solar and historic tax credits. The purposes of these investments are to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. These entities are considered VIEs as First Horizon Bank's subsidiaries represent the holders of the equity investment at risk, but do not have the ability to direct the activities that most significantly affect the performance of the entities. Small Issuer Trust Preferred Holdings First Horizon Bank holds variable interests in trusts which have issued mandatorily redeemable preferred capital securities (“trust preferreds”) for smaller banking and insurance enterprises. First Horizon Bank has no voting rights for the trusts’ activities. The trusts’ only assets are junior subordinated debentures of the issuing enterprises. The creditors of the trusts hold no recourse to the assets of First Horizon Bank. Since First Horizon Bank is solely a holder of the trusts’ securities, it has no rights which would give it the power to direct the activities that most significantly impact the trusts’ economic performance and thus it is not considered the primary beneficiary of the trusts. First Horizon Bank has no contractual requirements to provide financial support to the trusts. On-Balance Sheet Trust Preferred Securitization In 2007, First Horizon Bank executed a securitization of certain small issuer trust preferreds for which the underlying trust meets the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entity’s economic performance. Since First Horizon Bank did not retain servicing or other decision-making rights, First Horizon Bank is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the trust’s economic performance. Accordingly, First Horizon Bank has accounted for the funds received through the securitization as a term borrowing in its Consolidated Balance Sheets. First Horizon Bank has no contractual requirements to provide financial support to the trust. Holdings in Agency Mortgage-Backed Securities FHN holds securities issued by various Agency securitization trusts. Based on their restrictive nature, the trusts meet the definition of a VIE since the holders of the equity investments at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entities’ economic performance. FHN could potentially receive benefits or absorb losses that are significant to the trusts based on the nature of the trusts’ activities and the size of FHN’s holdings. However, FHN is solely a holder of the trusts’ securities and does not have the power to direct the activities that most significantly impact the trusts’ economic performance and is not considered the primary beneficiary of the trusts. FHN has no contractual requirements to provide financial support to the trusts. Commercial Loan Troubled Debt Restructurings For certain troubled commercial loans, First Horizon Bank restructures the terms of the borrower’s debt in an effort to increase the probability of receipt of amounts contractually due. Following a troubled debt restructuring, the borrower entity typically meets the definition of a VIE as the initial determination of whether an entity is a VIE must be reconsidered as events have proven that the entity’s equity is not sufficient to permit it to finance its activities without additional subordinated financial support or a restructuring of the terms of its financing. As First Horizon Bank does not have the power to direct the activities that most significantly impact such troubled commercial borrowers’ operations, it is not considered the primary beneficiary even in situations where, based on the size of the financing provided, First Horizon Bank is exposed to potentially significant benefits and losses of the borrowing entity. First Horizon Bank has no contractual requirements to provide financial support to the borrowing entities beyond certain funding commitments established upon restructuring of the terms of the debt that allows for preparation of the underlying collateral for sale. Proprietary Trust Preferred Issuances In conjunction with its acquisitions, FHN acquired junior subordinated debt underlying multiple issuances of trust preferred debt. All of the trusts are considered VIEs because the ownership interests from the capital contributions to these trusts are not considered “at risk” in evaluating whether the holders of the equity investments at risk in the trusts have the ability to direct the activities that most significantly impact the entities’ economic performance. Thus, FHN cannot be the trusts’ primary beneficiary because its ownership interests in the trusts are not considered variable interests as they are not considered “at risk”. Consequently, none of the trusts are consolidated by FHN. The following tables summarize FHN’s nonconsolidated VIEs as of June 30, 2022 and December 31, 2021: NONCONSOLIDATED VIEs AT JUNE 30, 2022 (Dollars in millions) Maximum Liability Classification Type Low income housing partnerships $ 417 $ 146 (a) Other tax credit investments (b) 88 68 Other assets Small issuer trust preferred holdings (c) 179 — Loans and leases On-balance sheet trust preferred securitization 27 87 (d) Holdings of agency mortgage-backed securities (c) 8,542 — (e) Commercial loan troubled debt restructurings (f) 57 — Loans and leases Proprietary trust preferred issuances (g) — 167 Term borrowings (a) Maximum loss exposure represents $271 million of current investments and $146 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are also recognized in other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024. (b) Maximum loss exposure represents the value of current investments. (c) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities. (d) Includes $112 million classified as loans and leases and $2 million classified as trading securities, which are offset by $87 million classified as term borrowings. (e) Includes $450 million classified as trading securities, $687 million classified as held to maturity and $7.4 billion classified as securities available for sale (f) Maximum loss exposure represents $57 million of current receivables with no additional contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring. (g) No exposure to loss due to nature of FHN's involvement. NONCONSOLIDATED VIEs AT DECEMBER 31, 2021 (Dollars in millions) Maximum Liability Classification Type Low income housing partnerships $ 382 $ 129 (a) Other tax credit investments (b) 77 56 Other assets Small issuer trust preferred holdings (c) 195 — Loans and leases On-balance sheet trust preferred securitization 27 87 (d) Holdings of agency mortgage-backed securities (c) 8,550 — (e) Commercial loan troubled debt restructurings (f) 98 — Loans and leases Proprietary trust preferred issuances (g) — 167 Term borrowings (a) Maximum loss exposure represents $253 million of current investments and $129 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are also recognized in other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024. (b) Maximum loss exposure represents current investments. (c) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities. (d) Includes $112 million classified as loans and leases and $2 million classified as trading securities, which are offset by $87 million classified as term borrowings. (e) Includes $526 million classified as trading securities, $712 million classified as held to maturity and $7.3 billion classified as securities available for sale. (f) Maximum loss exposure represents $94 million of current receivables and $4 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives In the normal course of business, FHN utilizes various financial instruments (including derivative contracts and credit-related agreements) through its fixed income and risk management operations, as part of its risk management strategy and as a means to meet clients’ needs. Derivative instruments are subject to credit and market risks in excess of the amount recorded on the balance sheet as required by GAAP. The contractual or notional amounts of these financial instruments do not necessarily represent the amount of credit or market risk. However, they can be used to measure the extent of involvement in various types of financial instruments. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. The ALCO controls, coordinates, and monitors the usage and effectiveness of these financial instruments. Credit risk represents the potential loss that may occur if a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. FHN manages credit risk by entering into financial instrument transactions through national exchanges, primary dealers or approved counterparties, and by using mutual margining and master netting agreements whenever possible to limit potential exposure. FHN also maintains collateral posting requirements with certain counterparties to limit credit risk. Daily margin posted or received with central clearinghouses is considered a legal settlement of the related derivative contracts which results in a net presentation for each contract in the Consolidated Balance Sheets. Treatment of daily margin as a settlement has no effect on hedge accounting or gains/losses for the applicable derivative contracts. On June 30, 2022 and December 31, 2021, respectively, FHN had $238 million and $181 million of cash receivables and $58 million and $102 million of cash payables related to collateral posting under master netting arrangements, inclusive of collateral posted related to contracts with adjustable collateral posting thresholds and over-collateralized positions, with derivative counterparties. With exchange-traded contracts, the credit risk is limited to the clearinghouse used. For non-exchange traded instruments, credit risk may occur when there is a gain in the fair value of the financial instrument and the counterparty fails to perform according to the terms of the contract and/or when the collateral proves to be of insufficient value. See additional discussion regarding master netting agreements and collateral posting requirements later in this note under the heading “Master Netting and Similar Agreements.” Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in interest rates or the prices of debt instruments. FHN manages market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. FHN continually measures this risk through the use of models that measure value-at-risk and earnings-at-risk. Derivative Instruments FHN enters into various derivative contracts both to facilitate client transactions and as a risk management tool. Where contracts have been created for clients, FHN enters into upstream transactions with dealers to offset its risk exposure. Contracts with dealers that require central clearing are novated to a clearing agent who becomes FHN’s counterparty. Derivatives are also used as a risk management tool to hedge FHN’s exposure to changes in interest rates or other defined market risks. Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Interest rate option contracts give the purchaser the right, but not the obligation, to buy or sell a specified quantity of a financial instrument, at a specified price, during a specified period of time. Caps and floors are options that are linked to a notional principal amount and an underlying indexed interest rate. Interest rate swaps involve the exchange of interest payments at specified intervals between two parties without the exchange of any underlying principal. Swaptions are options on interest rate swaps that give the purchaser the right, but not the obligation, to enter into an interest rate swap agreement during a specified period of time. Trading Activities FHNF trades U.S. Treasury, U.S. Agency, government-guaranteed loan, mortgage-backed, corporate and municipal fixed income securities, and other securities for distribution to clients. When these securities settle on a delayed basis, they are considered forward contracts. FHNF also enters into interest rate contracts, including caps, swaps, and floors, for its clients. In addition, FHNF enters into futures and option contracts to economically hedge interest rate risk associated with a portion of its securities inventory. These transactions are measured at fair value, with changes in fair value recognized in noninterest income. Related assets and liabilities are recorded on the Consolidated Balance Sheets as derivative assets and derivative liabilities within other assets and other liabilities. The FHNF Risk Committee and the Credit Risk Management Committee collaborate to mitigate credit risk related to these transactions. Credit risk is controlled through credit approvals, risk control limits, and ongoing monitoring procedures. Total trading revenues were $38 million and $91 million for the three months ended June 30, 2022 and 2021, $99 million and $206 million for the six months ended June 30, 2022 and 2021, respectively. Trading revenues are inclusive of both derivative and non-derivative financial instruments, and are included in fixed income on the Consolidated Statements of Income. The following tables summarize derivatives associated with FHNF's trading activities as of June 30, 2022 and December 31, 2021: DERIVATIVES ASSOCIATED WITH TRADING June 30, 2022 (Dollars in millions) Notional Assets Liabilities Customer interest rate contracts $ 3,183 $ 4 $ 194 Offsetting upstream interest rate contracts 3,183 29 2 Option contracts purchased 3 — — Forwards and futures purchased 3,262 14 7 Forwards and futures sold 3,513 7 14 December 31, 2021 (Dollars in millions) Notional Assets Liabilities Customer interest rate contracts $ 3,587 $ 84 $ 41 Offsetting upstream interest rate contracts 3,587 4 8 Option contracts purchased 13 — — Forwards and futures purchased 4,430 2 9 Forwards and futures sold 5,044 10 2 Interest Rate Risk Management FHN’s ALCO focuses on managing market risk by controlling and limiting earnings volatility attributable to changes in interest rates. Interest rate risk exists to the extent that interest-earning assets and interest-bearing liabilities have different maturity or repricing characteristics. FHN uses derivatives, primarily swaps, that are designed to moderate the impact on earnings as interest rates change. Interest paid or received for swaps utilized by FHN to hedge the fair value of long term debt is recognized as an adjustment of the interest expense of the liabilities whose risk is being managed. FHN’s interest rate risk management policy is to use derivatives to hedge interest rate risk or market value of assets or liabilities, not to speculate. In addition, FHN has entered into certain interest rate swaps and caps as a part of a product offering to commercial clients that includes customer derivatives paired with upstream offsetting market instruments that, when completed, are designed to mitigate interest rate risk. These contracts do not qualify for hedge accounting and are measured at fair value with gains or losses included in current earnings in noninterest expense on the Consolidated Statements of Income. The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of June 30, 2022 and December 31, 2021: DERIVATIVES ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT June 30, 2022 (Dollars in millions) Notional Assets Liabilities Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts $ 8,232 $ 9 $ 352 Offsetting upstream interest rate contracts 8,232 68 8 December 31, 2021 (Dollars in millions) Notional Assets Liabilities Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts $ 8,037 $ 202 $ 29 Offsetting upstream interest rate contracts 8,037 4 15 The following table summarizes gains (losses) on FHN’s derivatives associated with interest rate risk management activities for the three and six months ended June 30, 2022 and 2021: DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT Three Months Ended Six Months Ended 2022 2021 2022 2021 (Dollars in millions) Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts (a) $ 163 $ 46 $ 517 $ (168) Offsetting upstream interest rate contracts (a) (163) (46) (517) 168 (a) Gains (losses) included in other expense within the Consolidated Statements of Income. Cash Flow Hedges Prior to 2021, FHN entered into pay floating, receive fixed interest rate swaps designed to manage its exposure to the variability in cash flows related to interest payments on debt instruments. In conjunction with the IBKC merger, FHN acquired interest rate contracts (floors and collars) which have been re-designated as cash flow hedges. The debt instruments primarily consist of held-to-maturity commercial loans that have variable interest payments based on 1-month LIBOR. In 2022, FHN entered into interest rate contracts (floors) which have been designated as cash flow hedges. These hedges reference 1-month Term SOFR and FHN has made certain elections under ASU 2020-04 to facilitate qualification for hedge accounting during the time that hedged items transition away from 1-Month LIBOR. In a cash flow hedge, the entire change in the fair value of the interest rate derivatives included in the assessment of hedge effectiveness is initially recorded in OCI and is subsequently reclassified from OCI to current period earnings (interest income or interest expense) in the same period that the hedged item affects earnings. The following tables summarize FHN’s derivative activities associated with cash flow hedges as of June 30, 2022 and December 31, 2021: DERIVATIVES ASSOCIATED WITH CASH FLOW HEDGES June 30, 2022 (Dollars in millions) Notional Assets Liabilities Cash Flow Hedges Hedging Instruments: Interest rate contracts $ 3,850 $ 54 $ — Hedged Items: Variability in cash flows related to debt instruments (primarily loans) N/A $ 3,850 N/A December 31, 2021 (Dollars in millions) Notional Assets Liabilities Cash Flow Hedges Hedging Instruments: Interest rate contracts $ 1,100 $ 13 $ — Hedged Items: Variability in cash flows related to debt instruments (primarily loans) N/A $ 1,100 N/A The following table summarizes gains (losses) on FHN’s derivatives associated with cash flow hedges for the three and six months ended June 30, 2022 and 2021: DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH CASH FLOW HEDGES Three Months Ended Six Months Ended 2022 2021 2022 2021 (Dollars in millions) Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Cash Flow Hedges Hedging Instruments: Interest rate contracts (a) $ 37 $ (6) $ 69 $ (14) Gain (loss) recognized in other comprehensive income (loss) (25) — (45) (1) Gain (loss) reclassified from AOCI into interest income 3 (2) 2 (3) (a) Approximately $7 million of pre-tax gains are expected to be reclassified into earnings in the next twelve months. Other Derivatives FHN has mortgage banking operations that include the origination and sale of loans into the secondary market. As part of the origination of loans, FHN enters into interest rate lock commitments with borrowers. Additionally, FHN enters into forward sales contracts with buyers for delivery of loans at a future date. Both of these contracts qualify as freestanding derivatives and are recognized at fair value through earnings. The notional and fair values of these contracts are presented in the table below. DERIVATIVES ASSOCIATED WITH MORTGAGE BANKING HEDGES June 30, 2022 (Dollars in millions) Notional Assets Liabilities Mortgage Banking Hedges Option contracts written $ 144 $ 3 $ — Forward contracts written 239 1 1 December 31, 2021 (Dollars in millions) Notional Assets Liabilities Mortgage Banking Hedges Option contracts written $ 241 $ 4 $ — Forward contracts written 404 — — The following table summarizes gains (losses) on FHN's derivatives associated with mortgage banking activities for the three and six months ended June 30, 2022 and 2021: DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH MORTGAGE BANKING HEDGES Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Dollars in millions) Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Mortgage Banking Hedges Option contracts written $ (2) $ 1 $ 1 $ (9) Forward contracts written 9 (11) 27 12 In conjunction with pre-2020 sales of Visa Class B shares, FHN entered into derivative transactions whereby FHN will make or receive cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. As of June 30, 2022 and December 31, 2021, the derivative liabilities associated with the sales of Visa Class B shares were $28 million and $23 million, respectively. FHN recognized $12 million in derivative valuation adjustments related to prior sales of Visa Class B shares for the three and six months ended June 30, 2022 and $19 million for the year ended December 31, 2021. See Note 16 - Fair Value of Assets and Liabilities for discussion of the valuation inputs and processes for these Visa-related derivatives. FHN utilizes cross currency swaps and cross currency interest rate swaps to economically hedge its exposure to foreign currency risk and interest rate risk associated with non-U.S. dollar denominated loans. As of June 30, 2022 and December 31, 2021, these loans were valued at $6 million and $7 million, respectively. The balance sheet amount and the gains/losses associated with these derivatives were not significant. Related to its loan participation/syndication activities, FHN enters into risk participation agreements, under which it assumes exposure for, or receives indemnification for, borrowers’ performance on underlying interest rate derivative contracts. FHN's counterparties in these contracts are other lending institutions involved in the loan participation/syndication arrangements for which the underlying interest rate derivative contract is intended to hedge interest rate risk for the borrower. FHN will make (other institution is the lead bank) or receive (FHN is the lead bank) payments for risk participations if the borrower defaults on its obligation to perform under the terms of its interest rate derivative agreement with the lead bank in the participation. As of June 30, 2022 and December 31, 2021, the notional values of FHN’s risk participations were $229 million and $257 million of derivative assets and $777 million and $500 million of derivative liabilities, respectively. The notional value for risk participation/syndication agreements is consistent with the percentage of participation in the lending arrangement. FHN's maximum exposure or benefit in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts for which the borrower is in a liability position at the time of default. FHN monitors the credit risk associated with the borrowers to which the risk participations relate through the same credit risk assessment process utilized for establishing credit loss estimates for its loan portfolio. These credit risk estimates are included in the determination of fair value for the risk participations. Assuming all underlying third party customers referenced in the swap contracts defaulted at June 30, 2022 and December 31, 2021, the exposure from these agreements would not be material based on the fair value of the underlying swaps. FHN holds certain certificates of deposit with the rate of return based on an equity index which is considered an embedded derivative as a written option that must be separately recognized. The risks of the written option are offset by purchasing an option with terms that mirror the written option, which is also carried at fair value on the Company’s Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, FHN recognized an insignificant amount of assets and liabilities associated with these contracts. Master Netting and Similar Agreements FHN uses master netting agreements, mutual margining agreements and collateral posting requirements to minimize credit risk on derivative contracts. Master netting and similar agreements are used when counterparties have multiple derivatives contracts that allow for a “right of setoff,” meaning that a counterparty may net offsetting positions and collateral with the same counterparty under the contract to determine a net receivable or payable. The following discussion provides an overview of these arrangements which may vary due to the derivative type and market in which a derivative transaction is executed. Interest rate derivatives are subject to agreements consistent with standard agreement forms of the ISDA. Currently, all interest rate derivative contracts are entered into as over-the-counter transactions and collateral posting requirements are based on the net asset or liability position with each respective counterparty. For contracts that require central clearing, novation to a counterparty with access to a clearinghouse occurs and initial margin is posted. Cash margin received (posted) that is considered settlements for the derivative contracts is included in the respective derivative asset (liability) value. Cash margin that is considered collateral received (posted) for interest rate derivatives is recognized as a liability (asset) on FHN’s Consolidated Balance Sheets. Interest rate derivatives with clients that are smaller financial institutions typically require posting of collateral by the counterparty to FHN. This collateral is subject to a threshold with daily adjustments based upon changes in the level or fair value of the derivative position. Positions and related collateral can be netted in the event of default. Collateral pledged by a counterparty is typically cash or securities. The securities pledged as collateral are not recognized within FHN’s Consolidated Balance Sheets. Interest rate derivatives associated with lending arrangements share the collateral with the related loan(s). The derivative and loan positions may be netted in the event of default. For disclosure purposes, the entire collateral amount is allocated to the loan. Interest rate derivatives with larger financial institutions entered into prior to required central clearing typically contain provisions whereby the collateral posting thresholds under the agreements adjust based on the credit ratings of both counterparties. If the credit rating of FHN and/or First Horizon Bank is lowered, FHN could be required to post additional collateral with the counterparties. Conversely, if the credit rating of FHN and/or First Horizon Bank is increased, FHN could have collateral released and be required to post less collateral in the future. Also, if a counterparty’s credit ratings were to decrease, FHN and/or First Horizon Bank could require the posting of additional collateral; whereas if a counterparty’s credit ratings were to increase, the counterparty could require the release of excess collateral. Collateral for these arrangements is adjusted daily based on changes in the net fair value position with each counterparty. The net fair value, determined by individual counterparty, of all derivative instruments with adjustable collateral posting thresholds was $1 million of assets and $192 million of liabilities on June 30, 2022, and $67 million of assets and $26 million of liabilities on December 31, 2021. As of June 30, 2022 and December 31, 2021, FHN had received collateral of $142 million and $205 million and posted collateral of $44 million and $14 million, respectively, in the normal course of business related to these agreements. Certain agreements entered into prior to required central clearing also contain accelerated termination provisions, inclusive of the right of offset, if a counterparty’s credit rating falls below a specified level. If a counterparty’s debt rating (including FHN’s and First Horizon Bank’s) were to fall below these minimums, these provisions would be triggered, and the counterparties could terminate the agreements and require immediate settlement of all derivative contracts under the agreements. The net fair value, determined by individual counterparty, of all interest rate derivative instruments with credit-risk-related contingent accelerated termination provisions was $140 million of assets and $192 million of liabilities on June 30, 2022, and $74 million of assets and $30 million of liabilities on December 31, 2021. As of June 30, 2022 and December 31, 2021, FHN had received collateral of $284 million and $213 million and posted collateral of $44 million and $18 million, respectively, in the normal course of business related to these contracts. FHNF buys and sells various types of securities for its clients. When these securities settle on a delayed basis, they are considered forward contracts, and are generally not subject to master netting agreements. For futures and options, FHN transacts through a third party, and the transactions are subject to margin and collateral maintenance requirements. In the event of default, open positions can be offset along with the associated collateral. For this disclosure, FHN considers the impact of master netting and other similar agreements which allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net derivative asset or liability position with the related securities and cash collateral. The application of the collateral cannot reduce the net derivative asset or liability position below zero, and therefore any excess collateral is not reflected in the following tables. The following table provides details of derivative assets and collateral received as presented on the Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021: DERIVATIVE ASSETS & COLLATERAL RECEIVED Gross amounts not offset in the Balance Sheets (Dollars in millions) Gross amounts Gross amounts Net amounts of Derivative Collateral Net amount Derivative assets: June 30, 2022 Interest rate derivative contracts $ 166 $ — $ 166 $ (15) $ (151) $ — Forward contracts 21 — 21 (12) (9) — $ 187 $ — $ 187 $ (27) $ (160) $ — December 31, 2021 Interest rate derivative contracts $ 311 $ — $ 311 $ (32) $ (181) $ 98 Forward contracts 12 — 12 (4) (3) 5 $ 323 $ — $ 323 $ (36) $ (184) $ 103 (a) Included in other assets on the Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, $2 million and $2 million, respectively, of derivative assets have been excluded from these tables because they are generally not subject to master netting or similar agreements. The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021: DERIVATIVE LIABILITIES & COLLATERAL PLEDGED Gross amounts not offset (Dollars in millions) Gross amounts Gross amounts Net amounts of Derivative Collateral Net amount Derivative liabilities: June 30, 2022 Interest rate derivative contracts $ 557 $ — $ 557 $ (15) $ (167) $ 375 Forward contracts 21 — 21 (12) (8) 1 $ 578 $ — $ 578 $ (27) $ (175) $ 376 December 31, 2021 Interest rate derivative contracts $ 93 $ — $ 93 $ (32) $ (38) $ 23 Forward contracts 10 — 10 (4) (1) 5 $ 103 $ — $ 103 $ (36) $ (39) $ 28 (a) Included in other liabilities on the Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, $28 million and $24 million, respectively, of derivative liabilities (primarily Visa-related derivatives) have been excluded from these tables because they are generally not subject to master netting or similar agreements. |
Master Netting and Similar Agre
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Offsetting [Abstract] | |
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions | Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions For repurchase, reverse repurchase and securities borrowing transactions, FHN and each counterparty have the ability to offset all open positions and related collateral in the event of default. Due to the nature of these transactions, the value of the collateral for each transaction approximates the value of the corresponding receivable or payable. For repurchase agreements through FHN’s fixed income business (securities purchased under agreements to resell and securities sold under agreements to repurchase), transactions are collateralized by securities and/or government guaranteed loans which are delivered on the settlement date and are maintained throughout the term of the transaction. For FHN’s repurchase agreements through banking activities (securities sold under agreements to repurchase), securities are typically pledged at settlement and not released until maturity. For asset positions, the collateral is not included on FHN’s Consolidated Balance Sheets. For liability positions, securities collateral pledged by FHN is generally represented within FHN’s trading or available-for-sale securities portfolios. For this disclosure, FHN considers the impact of master netting and other similar agreements that allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net asset or liability position with the related securities collateral. The application of the collateral cannot reduce the net asset or liability position below zero, and therefore any excess collateral is not reflected in the tables below. Securities purchased under agreements to resell is included in federal funds sold and securities purchased under agreements to resell in the Consolidated Balance Sheets. Securities sold under agreements to repurchase is included in short-term borrowings. The following table provides details of securities purchased under agreements to resell and collateral pledged by counterparties as of June 30, 2022 and December 31, 2021: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL Gross amounts not offset in the (Dollars in millions) Gross amounts Gross amounts Net amounts of Offsetting Securities collateral Net amount Securities purchased under agreements to resell: June 30, 2022 $ 423 $ — $ 423 $ (6) $ (415) $ 2 December 31, 2021 488 — 488 (10) (476) 2 The following table provides details of securities sold under agreements to repurchase and collateral pledged by FHN as of June 30, 2022 and December 31, 2021: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Gross amounts not offset in the (Dollars in millions) Gross amounts Gross amounts Net amounts of Offsetting Securities/ Net amount Securities sold under agreements to repurchase: June 30, 2022 $ 1,158 $ — $ 1,158 $ (6) $ (1,152) $ — December 31, 2021 1,247 — 1,247 (10) (1,237) — Due to the short duration of securities sold under agreements to repurchase and the nature of collateral involved, the risks associated with these transactions are considered minimal. The following tables provide details, by collateral type, of the remaining contractual maturity of securities sold under agreements to repurchase as of June 30, 2022 and December 31, 2021: MATURITIES OF SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE June 30, 2022 (Dollars in millions) Overnight and Up to 30 Days Total Securities sold under agreements to repurchase: U.S. treasuries $ 6 $ — $ 6 Government agency issued MBS 1,027 — 1,027 Government agency issued CMO 95 — 95 Other U.S. government agencies 30 — 30 Total securities sold under agreements to repurchase $ 1,158 $ — $ 1,158 December 31, 2021 (Dollars in millions) Overnight and Up to 30 Days Total Securities sold under agreements to repurchase: U.S. treasuries $ 33 $ — $ 33 Government agency issued MBS 1,068 — 1,068 Other U.S. government agencies 31 — 31 Government guaranteed loans (SBA and USDA) 115 — 115 Total securities sold under agreements to repurchase $ 1,247 $ — $ 1,247 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities FHN groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. This hierarchy requires FHN to maximize the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Each fair value measurement is placed into the proper level based on the lowest level of significant input. These levels are: • Level 1 —Valuation is based upon quoted prices for identical instruments traded in active markets. • Level 2 —Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 —Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques. Recurring Fair Value Measurements The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021: BALANCES OF ASSETS & LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS June 30, 2022 (Dollars in millions) Level 1 Level 2 Level 3 Total Trading securities: U.S. treasuries $ — $ 19 $ — $ 19 Government agency issued MBS — 228 — 228 Government agency issued CMO — 223 — 223 Other U.S. government agencies — 50 — 50 States and municipalities — 13 — 13 Corporate and other debt — 833 — 833 Interest-only strips (elected fair value) — — 26 26 Total trading securities — 1,366 26 1,392 Loans held for sale (elected fair value) — 109 34 143 Securities available for sale: Government agency issued MBS — 4,779 — 4,779 Government agency issued CMO — 2,626 — 2,626 Other U.S. government agencies — 974 — 974 States and municipalities — 562 — 562 Total securities available for sale — 8,941 — 8,941 Other assets: Deferred compensation mutual funds 115 — — 115 Equity, mutual funds, and other 22 — — 22 Derivatives, forwards and futures 22 — — 22 Derivatives, interest rate contracts — 166 — 166 Derivatives, other — 1 — 1 Total other assets 159 167 — 326 Total assets $ 159 $ 10,583 $ 60 $ 10,802 Trading liabilities: U.S. treasuries $ — $ 298 $ — $ 298 Government issued agency CMO — 1 — 1 Corporate and other debt — 95 — 95 Total trading liabilities — 394 — 394 Other liabilities: Derivatives, forwards and futures 21 — — 21 Derivatives, interest rate contracts — 556 — 556 Derivatives, other — 1 28 29 Total other liabilities 21 557 28 606 Total liabilities $ 21 $ 951 $ 28 $ 1,000 December 31, 2021 (Dollars in millions) Level 1 Level 2 Level 3 Total Trading securities: U.S. treasuries $ — $ 85 $ — $ 85 Government agency issued MBS — 464 — 464 Government agency issued CMO — 62 — 62 Other U.S. government agencies — 276 — 276 States and municipalities — 34 — 34 Corporate and other debt — 642 — 642 Interest-only strips (elected fair value) — — 38 38 Total trading securities — 1,563 38 1,601 Loans held for sale (elected fair value) — 230 28 258 Securities available for sale: Government agency issued MBS — 5,055 — 5,055 Government agency issued CMO — 2,257 — 2,257 Other U.S. government agencies — 850 — 850 States and municipalities — 545 — 545 Total securities available for sale — 8,707 — 8,707 Other assets: Deferred compensation mutual funds 125 — — 125 Equity, mutual funds, and other 25 — — 25 Derivatives, forwards and futures 12 — — 12 Derivatives, interest rate contracts — 311 — 311 Derivatives, other — 1 — 1 Total other assets 162 312 — 474 Total assets $ 162 $ 10,812 $ 66 $ 11,040 Trading liabilities: U.S. treasuries $ — $ 334 $ — $ 334 Government agency issued MBS — 1 — 1 Corporate and other debt — 91 — 91 Total trading liabilities — 426 — 426 Other liabilities: Derivatives, forwards and futures 11 — — 11 Derivatives, interest rate contracts — 93 — 93 Derivatives, other — 1 23 24 Total other liabilities 11 94 23 128 Total liabilities $ 11 $ 520 $ 23 $ 554 Changes in Recurring Level 3 Fair Value Measurements The changes in Level 3 assets and liabilities measured at fair value for the three months ended June 30, 2022 and 2021 on a recurring basis are summarized as follows: CHANGES IN LEVEL 3 ASSETS & LIABILITIES MEASURED AT FAIR VALUE Three Months Ended June 30, 2022 (Dollars in millions) Interest-only strips Loans held Net Balance on April 1, 2022 $ 12 $ 32 $ (18) Total net gains (losses) included in net income (3) — (12) Settlements — — 2 Net transfers into (out of) Level 3 17 (b) 2 — Balance on June 30, 2022 $ 26 $ 34 $ (28) Net unrealized gains (losses) included in net income $ (3) (c) $ — (a) $ (12) (d) Three Months Ended June 30, 2021 (Dollars in millions) Interest-only strips-AFS Loans held for sale Loans Net Balance on April 1, 2021 $ 22 $ 12 $ 17 $ (21) Total net gains (losses) included in net income (1) 1 — — Purchases — 5 — — Sales (6) (10) — — Settlements — (1) — 3 Net transfers into (out of) Level 3 15 (b) 18 (e) (17) (e) — Balance on June 30, 2021 $ 30 $ 25 $ — $ (18) Net unrealized gains (losses) included in net income $ (1) (c) $ 1 (a) $ — $ — (d) (a) Primarily included in mortgage banking and title income on the Consolidated Statements of Income. (b) Transfers into interest-only strips level 3 measured on a recurring basis reflect movements from loans held for sale (Level 2 nonrecurring). (c) Primarily included in fixed income on the Consolidated Statements of Income. (d) Included in other expense. (e) The loans held for investment at fair value option portfolio was transferred to the loans held for sale portfolio on April 1, 2021. The changes in Level 3 assets and liabilities measured at fair value for the six months ended June 30, 2022 and 2021, on a recurring basis are summarized as follows: CHANGES IN LEVEL 3 ASSETS & LIABILITIES MEASURED AT FAIR VALUE Six Months Ended June 30, 2022 (Dollars in millions) Interest-only strips Loans held Net derivative Balance on January 1, 2022 $ 38 $ 28 $ (23) Total net gains (losses) included in net income (3) — (12) Purchases — 1 — Sales (37) — — Settlements — (1) 7 Net transfers into (out of) Level 3 28 (b) 6 — Balance on June 30, 2022 $ 26 $ 34 $ (28) Net unrealized gains (losses) included in net income $ (4) (c) $ — (a) $ (12) (d) Six Months Ended June 30, 2021 (Dollars in millions) Interest-only strips-AFS Loans held for sale Loans held for investment Net derivative Balance on January 1, 2021 $ 32 $ 12 $ 16 $ (14) Total net gains (losses) included in net income 4 2 — (9) Purchases — 5 — — Sales (33) (10) — — Settlements — (2) (2) 5 Net transfers into (out of) Level 3 27 (b) 18 (e) (14) (e) — Balance on June 30, 2021 $ 30 $ 25 $ — $ (18) Net unrealized gains (losses) included in net income $ 1 (c) $ 2 (a) $ — $ (9) (d) (a) Primarily included in mortgage banking and title income on the Consolidated Statements of Income. (b) Transfers into interest-only strips level 3 measured on a recurring basis reflect movements from loans held for sale (Level 2 nonrecurring). (c) Primarily included in fixed income on the Consolidated Statements of Income. (d) Included in other expense. (e) The loans held for investment at fair value option portfolio was transferred to the loans held for sale portfolio on April 1, 2021. There were no net unrealized gains (losses) for Level 3 assets and liabilities included in other comprehensive income as of June 30, 2022 and 2021. Nonrecurring Fair Value Measurements From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market (LOCOM) accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the Consolidated Balance Sheets at June 30, 2022, and December 31, 2021, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value. LEVEL OF VALUATION ASSUMPTIONS FOR ASSETS MEASURED AT FAIR VALUE ON A NON-RECURRING BASIS Carrying value at June 30, 2022 (Dollars in millions) Level 1 Level 2 Level 3 Total Loans held for sale—SBAs and USDA $ — $ 690 $ — $ 690 Loans held for sale—first mortgages — — 1 1 Loans and leases (a) — — 133 133 OREO (b) — — 2 2 Other assets (c) — — 40 40 Carrying value at December 31, 2021 (Dollars in millions) Level 1 Level 2 Level 3 Total Loans held for sale—SBAs and USDA $ — $ 852 $ 1 $ 853 Loans held for sale—first mortgages — — 1 1 Loans and leases (a) — — 84 84 OREO (b) — — 3 3 Other assets (c) — — 30 30 (a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses. (b) Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages. (c) Represents tax credit investments accounted for under the equity method. For assets measured on a nonrecurring basis which were still held on the Consolidated Balance Sheets at period end, the following table provides information about the fair value adjustments recorded during the three and six months ended June 30, 2022 and 2021: FAIR VALUE ADJUSTMENTS ON ASSETS MEASURED ON A NONRECURRING BASIS Net gains (losses) Net gains (losses) (Dollars in millions) 2022 2021 2022 2021 Loans held for sale—SBAs and USDA $ (3) $ (2) $ (4) $ (2) Loans and leases (a) — (1) (1) (3) OREO (b) — (1) — (1) Other assets (c) (1) — (2) — $ (4) $ (4) $ (7) $ (6) (a) Write-downs on these loans are recognized as part of provision for credit losses. (b) Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages. (c) Represents tax credit investments accounted for under the equity method. For the three and six months ended June 30, 2022, FHN recognized $1 million of fixed asset recoveries for both periods and less than $1 million of leased asset impairments primarily related to continuing merger and acquisition integration efforts associated with reduction of leased office space and banking center optimization. These amounts were primarily recognized in the Corporate segment. For the three and six months ended June 30, 2021, FHN recognized less than $1 million and $33 million of fixed asset impairments, respectively, and no impairment and $3 million of leased asset impairments, respectively, primarily related to continuing merger and acquisition integration efforts associated with reduction of leased office space and banking center optimization. These amounts were primarily recognized in the Corporate segment. Lease asset impairments recognized represent the reduction in value of the right-of-use assets associated with leases that are being exited in advance of the contractual lease expiration. Impairments are measured using a discounted cash flow methodology, which is considered a Level 3 valuation. Impairments of long-lived tangible assets reflect locations where the associated land and building are either owned or leased. The fair values of owned sites were determined using estimated sales prices from appraisals and broker opinions less estimated costs to sell with adjustments upon final disposition. The fair values of owned assets in leased sites (e.g., leasehold improvements) were determined using a discounted cash flow approach, based on the revised estimated useful lives of the related assets. Both measurement methodologies are considered Level 3 valuations. Impairment adjustments recognized upon disposition of a location are considered Level 2 valuations. Level 3 Measurements The following tables provide information regarding the unobservable inputs utilized in determining the fair value of Level 3 recurring and non-recurring measurements as of June 30, 2022 and December 31, 2021: UNOBSERVABLE INPUTS USED IN LEVEL 3 FAIR VALUE MEASUREMENTS (Dollars in millions) Values Utilized Level 3 Class Fair Value at June 30, 2022 Valuation Techniques Unobservable Input Range Weighted Average (d) Trading securities - SBA interest-only strips $ 26 Discounted cash flow Constant prepayment rate 12% 12% Bond equivalent yield 16% - 18% 16% Loans held for sale - residential real estate $ 35 Discounted cash flow Prepayment speeds - First mortgage 3% - 10% 4% Foreclosure losses 63% - 77% 65% Loss severity trends - First mortgage 0% - 12% of UPB 7% Derivative liabilities, other $ 28 Discounted cash flow Visa covered litigation resolution amount $5.4 billion - $6.2 billion $5.9 billion Probability of resolution scenarios 10% - 30% 24% Time until resolution 6 - 36 months 24 months Loans and leases (a) $ 133 Appraisals from comparable properties Marketability adjustments for specific properties 0% - 10% of appraisal NM Other collateral valuations Borrowing base certificates adjustment 20% - 50% of gross value NM Financial Statements/Auction values adjustment 0% - 25% of reported value NM OREO (b) $ 2 Appraisals from comparable properties Adjustment for value changes since appraisal 0% - 10% of appraisal NM Other assets (c) $ 40 Discounted cash flow Adjustments to current sales yields for specific properties 0% - 15% adjustment to yield NM Appraisals from comparable properties Marketability adjustments for specific properties 0% - 25% of appraisal NM NM - Not meaningful (a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses. (b) Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages. (c) Represents tax credit investments accounted for under the equity method. (d) Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value. (Dollars in millions) Values Utilized Level 3 Class Fair Value at December 31, 2021 Valuation Techniques Unobservable Input Range Weighted Average (d) Trading securities - SBA interest-only strips $ 38 Discounted cash flow Constant prepayment rate 11% - 12% 11% Bond equivalent yield 11% - 14% 11% Loans held for sale - residential real estate $ 29 Discounted cash flow Prepayment speeds - First mortgage 4% - 12% 5% Foreclosure losses 54% - 66% 65% Loss severity trends - First mortgage 1% - 14% of UPB 8% Loans held for sale - unguaranteed interest in SBA loans $ 1 Discounted cash flow Constant prepayment rate 8% - 12% 10% Bond equivalent yield 11% 11% Derivative liabilities, other $ 23 Discounted cash flow Visa covered litigation resolution amount $5.8 billion - $6.2 billion $6.0 billion Probability of resolution scenarios 15% - 35% 24% Time until resolution 12 - 36 months 25 months Loans and leases (a) $ 84 Appraisals from comparable properties Marketability adjustments for specific properties 0% - 10% of appraisal NM Other collateral valuations Borrowing base certificates adjustment 20% - 50% of gross value NM Financial Statements/Auction values adjustment 0% - 25% of reported value NM OREO (b) $ 3 Appraisals from comparable properties Adjustment for value changes since appraisal 0% - 10% of appraisal NM Other assets (c) $ 30 Discounted cash flow Adjustments to current sales yields for specific properties 0% - 15% adjustment to yield NM Appraisals from comparable properties Marketability adjustments for specific properties 0% - 25% of appraisal NM NM - Not meaningful (a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses. (b) Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages. (c) Represents tax credit investments accounted for under the equity method. (d) Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value. Trading Securities - SBA interest-only strips Increases (decreases) in estimated prepayment rates and bond equivalent yields negatively (positively) affect the value of SBA interest-only strips. Management additionally considers whether the loans underlying related SBA interest-only strips are delinquent, in default or prepaying, and adjusts the fair value down 20 - 100% depending on the length of time in default. SBA interest-only strips were transferred from AFS to trading securities on October 1, 2021. Loans held for sale Foreclosure losses and prepayment rates are significant unobservable inputs used in the fair value measurement of FHN’s residential real estate loans held for sale. Loss severity trends are also assessed to evaluate the reasonableness of fair value estimates resulting from discounted cash flows methodologies as well as to estimate fair value for newly repurchased loans and loans that are near foreclosure. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. All observable and unobservable inputs are re-assessed quarterly. Increases (decreases) in estimated prepayment rates and bond equivalent yields negatively (positively) affect the value of unguaranteed interests in SBA loans. Unguaranteed interest in SBA loans held for sale are carried at less than the outstanding balance due to credit risk estimates. Credit risk adjustments may be reduced if prepayment is likely or as consistent payment history is realized. Management also considers other factors such as delinquency or default and adjusts the fair value accordingly. Loans held for investment Constant prepayment rate, constant default rate and loss severity trends are significant unobservable inputs used in the fair value measurement of loans held for investment. Increases (decreases) in each of these inputs in isolation result in negative (positive) effects on the valuation of the associated loans. Derivative liabilities In conjunction with pre-2020 sales of Visa Class B shares, FHN and the purchasers entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. FHN uses a discounted cash flow methodology in order to estimate the fair value of FHN’s derivative liabilities associated with its prior sales of Visa Class B shares. The methodology includes estimation of both the resolution amount for Visa’s Covered Litigation matters as well as the length of time until the resolution occurs. Significant increases (decreases) in either of these inputs in isolation would result in significantly higher (lower) fair value measurements for the derivative liabilities. Additionally, FHN performs a probability weighted multiple resolution scenario to calculate the estimated fair value of these derivative liabilities. Assignment of higher (lower) probabilities to the larger potential resolution scenarios would result in an increase (decrease) in the estimated fair value of the derivative liabilities. Since this estimation process requires application of judgment in developing significant unobservable inputs used to determine the possible outcomes and the probability weighting assigned to each scenario, these derivatives have been classified within Level 3 in fair value measurements disclosures. Loans and leases and Other Real Estate Owned Collateral-dependent loans and OREO are primarily valued using appraisals based on sales of comparable properties in the same or similar markets. Other collateral (receivables, inventory, equipment, etc.) is valued through borrowing base certificates, financial statements and/or auction valuations. These valuations are discounted based on the quality of reporting, knowledge of the marketability/collectability of the collateral and historical disposition rates. Other assets – tax credit investments The estimated fair value of tax credit investments accounted for under the equity method is generally determined in relation to the yield (i.e., future tax credits to be received) an acquirer of these investments would expect in relation to the yields experienced on current new issue and/or secondary market transactions. Thus, as tax credits are recognized, the future yield to a market participant is reduced, resulting in consistent impairment of the individual investments. Individual investments are reviewed for impairment quarterly, which may include the consideration of additional marketability discounts related to specific investments which typically includes consideration of the underlying property’s appraised value. Fair Value Option FHN has elected the fair value option on a prospective basis for substantially all types of mortgage loans originated for sale purposes except for mortgage origination operations which utilize the platform acquired from CBF. FHN determined that the election reduces certain timing differences and better matches changes in the value of such loans with changes in the value of derivatives and forward delivery commitments used as economic hedges for these assets at the time of election. Repurchased loans relating to mortgage banking operations conducted prior to the IBKC merger are recognized within loans held for sale at fair value at the time of repurchase, which includes consideration of the credit status of the loans and the estimated liquidation value. FHN has elected to continue recognition of these loans at fair value in periods subsequent to reacquisition. Due to the credit-distressed nature of the vast majority of repurchased loans and the related loss severities experienced upon repurchase, FHN believes that the fair value election provides a more timely recognition of changes in value for these loans that occur subsequent to repurchase. Absent the fair value election, these loans would be subject to valuation at the LOCOM value, which would prevent subsequent values from exceeding the initial fair value, determined at the time of repurchase, but would require recognition of subsequent declines in value. Thus, the fair value election provides for a more timely recognition of any potential future recoveries in asset values while not affecting the requirement to recognize subsequent declines in value. FHN also had a portion of mortgage loans held for investment for which the fair value option was elected upon origination and which were accounted for at fair value. This portion of mortgage loans held for investment at fair value option was transferred to the loans held for sale portfolio on April 1, 2021. The following tables reflect the differences between the fair value carrying amount of residential real estate loans held for sale and held for investment measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity. DIFFERENCES BETWEEN FAIR VALUE CARRYING AMOUNTS AND CONTRACTUAL AMOUNTS OF RESIDENTIAL REAL ESTATE LOANS REPORTED AT FAIR VALUE June 30, 2022 (Dollars in millions) Fair value Aggregate Fair value carrying amount Residential real estate loans held for sale reported at fair value: Total loans $ 143 $ 148 $ (5) Nonaccrual loans 4 7 (3) December 31, 2021 (Dollars in millions) Fair value Aggregate Fair value carrying amount Residential real estate loans held for sale reported at fair value: Total loans $ 258 $ 264 $ (6) Nonaccrual loans 4 7 (3) Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table: CHANGES IN FAIR VALUE RECOGNIZED IN NET INCOME Three Months Ended Six Months Ended (Dollars in millions) 2022 2021 2022 2021 Changes in fair value included in net income: Mortgage banking and title noninterest income Loans held for sale $ 2 $ 4 $ (6) $ (5) For the three and six months ended June 30, 2022 and 2021, the amount for residential real estate loans held for sale included an insignificant amount of gains in pretax earnings that are attributable to changes in instrument-specific credit risk. The portion of the fair value adjustments related to credit risk was determined based on estimated default rates and estimated loss severities. Interest income on residential real estate loans held for sale measured at fair value is calculated based on the note rate of the loan and is recorded in the interest income section of the Consolidated Statements of Income as interest on loans held for sale. Determination of Fair Value Fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following describes the assumptions and methodologies used to estimate the fair value of financial instruments recorded at fair value in the Consolidated Balance Sheets and for estimating the fair value of financial instruments for which fair value is disclosed. Short-term financial assets Federal funds sold, securities purchased under agreements to resell, and interest-bearing deposits with other financial institutions and the Federal Reserve are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization. Trading securities and trading liabilities Trading securities and trading liabilities are recognized at fair value through current earnings. Trading inventory held for broker-dealer operations is included in trading securities and trading liabilities. Broker-dealer long positions are valued at bid price in the bid-ask spread. Short positions are valued at the ask price. Inventory positions are valued using observable inputs including current market transactions, benchmark yields, credit spreads, and consensus prepayment speeds. Trading loans are valued using observable inputs including current market transactions, swap rates, mortgage rates, and consensus prepayment speeds. Trading Securities - SBA interest-only strips Interest-only strips are valued at elected fair value based on an income approach using an internal valuation model. The internal valuation model includes assumptions regarding projections of future cash flows, prepayment rates, default rates and interest-only strip terms. These securities bear the risk of loan prepayment or default that may result in FHN not recovering all or a portion of its recorded investment. When appropriate, valuations are adjusted for various factors including default or prepayment status of the underlying SBA loans. Because of the inherent uncertainty of valuation, those estimated values may be higher or lower than the values that would have been used had a ready market for the securities existed, and may change in the near term. SBA interest-only strips were transferred from AFS to trading on October 1, 2021. Securities available for sale and held to maturity Valuations of debt securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include benchmark yields, consensus prepayment speeds, and credit spreads. Trades from similar securities and broker quotes are used to support these valuations. Loans held for sale FHN determines the fair value of loans held for sale using either current transaction prices or discounted cash flow models. Fair values are determined using current transaction prices and/or values on similar assets when available, including committed bids for specific loans or loan portfolios. Uncommitted bids may be adjusted based on other available market information. Fair value of residential real estate loans held for sale determined using a discounted cash flow model incorporates both observable and unobservable inputs. Inputs in the discounted cash flow model include current mortgage rates for similar products, estimated prepayment rates, foreclosure losses, and various loan performance measures (delinquency, LTV, credit score). Adjustments for delinquency and other differences in loan characteristics are typically reflected in the model’s discount rates. Loss severity trends and the value of underlying collateral are also considered in assessing the appropriate fair value for severely delinquent loans and loans in foreclosure. The valuation of HELOCs also incorporates estimated cancellation rates for loans expected to become delinquent. Non-mortgage consumer loans held for sale are valued using committed bids for specific loans or loan portfolios or current market pricing for similar assets with adjustments for differences in credit standing (delinquency, historical default rates for similar loans), yield, collateral values and prepayment rates. If pricing for similar assets is not available, a discounted cash flow methodology is utilized, which incorporates all of these factors into an estimate of investor required yield for the discount rate. FHN utilizes quoted market prices of similar instruments or broker and dealer quotations to value the SBA and USDA guaranteed loans. FHN values SBA-unguaranteed interests in loans held for sale based on individual loan characteristics, such as industry type and pay history which generally follows an income approach. Furthermore, these valuations are adjusted for changes in prepayment estimates and are reduced due to restrictions on trading. The fair value of other non-residential real estate loans held for sale is approximated by their carrying values based on current transaction values. Mortgage loans held for investment at fair value option The fair value of mortgage loans held for investment at fair value option is determined by a third party using a discounted cash flow model using various assumptions about future loan performance (constant prepayment rate, constant default rate and loss severity trends) and market discount rates. Loans held for investment The fair values of mortgage loans are estimated using an exit price methodology that is based on present values using the interest rate that would be charged for a similar loan to a borrower with similar risk, weighted for varying maturity dates and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. Other loans and leases are valued based on present values using the interest rate that would be charged for a similar instrument to a borrower with similar risk, applicable to each category of instruments, and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. For loans measured using the estimated fair value of collateral less costs to sell, fair value is estimated using appraisals of the collateral. Collateral values are monitored and additional write-downs are recognized if it is determined that the estimated collateral values have declined further. Estimated costs to sell are based on current amounts of disposal costs for similar assets. Carrying value is considered to reflect fair value for these loans. Derivative assets and liabilities The fair value for forwards and futures contracts is based on current transactions involving identical securities. Futures contracts are exchange-traded and thus have no credit risk factor assigned as the risk of non-performance is limited to the clearinghouse used. Valuations of other derivatives (primarily interest rate contract |
Other Events
Other Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Other Events | Other EventsOn July 30, 2022, FHN sold its title services business, Lenders Title Group, resulting in a gain of approximately $20 million that will be recognized in third quarter 2022. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Accounting | The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all significant adjustments, consisting of normal and recurring items, considered necessary for fair presentation. These interim financial statements should be read in conjunction with FHN's audited consolidated financial statements and notes in FHN's Annual Report on Form 10-K, as amended, for the year ended December 31, 2021. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts reported in prior years have been reclassified to conform to the current period presentation. See the Glossary of Acronyms and Terms included in this Report for terms used herein. |
Accounting Changes With Extended Transition Periods and Accounting Changes Issued But Not Currently Effective | Accounting Changes With Extended Transition Periods In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides several optional expedients and exceptions to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The provisions of ASU 2020-04 primarily affect 1) contract modifications (e.g., loans, leases, debt, and derivatives) made in anticipation that a reference rate (e.g., LIBOR) will be discontinued and 2) the application of hedge accounting for existing relationships affected by those modifications. The provisions of ASU 2020-04 are effective upon release and apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by ASU 2020-04 do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. FHN has identified contracts affected by reference rate reform and developed modification plans for those contracts. FHN has elected to utilize the optional expedients and exceptions provided by ASU 2020-04 for certain contract modifications that have already been implemented. For cash flow hedges that reference 1-Month USD LIBOR, FHN has applied expedients related to 1) the assumption of probability of cash flows when reference rates are changed on hedged items 2) avoiding de-designation when critical terms (i.e., reference rates) change and 3) the allowed assumption of shared risk exposure for hedged items. For its 2022 cash flow hedges that reference 1-Month Term SOFR, FHN has applied expedients related to 1) the allowed assumption of shared risk exposure for hedged items and 2) multiple allowed assumptions of conformity between hedged items and the hedging instrument when assessing effectiveness. FHN anticipates that it will continue to utilize the expedients and exceptions for future modifications in situations where they mitigate potential accounting outcomes that do not faithfully represent management’s intent or risk management activities, consistent with the purpose of the standard. The FASB has proposed an extension of the transition window for ASU 2020-04 until December 31, 2024, consistent with key USD LIBOR tenors continuing to be published through June 30, 2023. In January 2021, the FASB issued ASU 2021-01, "Scope" to expand the scope of ASU 2020-04 to apply to certain contract modifications that were implemented in October 2020 by derivative clearinghouses for the use of Secure Overnight Funding Rate (SOFR) in discounting, margining and price alignment for centrally cleared derivatives, including derivatives utilized in hedging relationships. ASU 2021-01 also applies to derivative contracts affected by the change in discounting convention regardless of whether they are centrally cleared (i.e., bi-lateral contracts can also be modified) and regardless of whether they reference LIBOR. ASU 2021-01 was effective immediately upon issuance with retroactive application permitted. FHN elected to retroactively apply the provisions of ASU 2021-01 because FHN's centrally cleared derivatives were affected by the change in discounting convention and because FHN has other bi-lateral derivative contracts that may be modified to conform to the use of SOFR for discounting. Adoption did not have a significant effect on FHN's reported financial condition or results of operations. Accounting Changes Issued But Not Currently Effective ASU 2022-01 In March 2022, the FASB issued ASU 2022-01, "Fair Value Hedging - Portfolio Layer Method", which will expand FHN's ability to hedge the benchmark interest rate risk of portfolios of financial interests (or beneficial interests) in a fair value hedge. The provisions of ASU 2022-01 also permit FHN to apply the same portfolio hedging method to both prepayable and non-prepayable financial assets, namely by expanding the use of the "portfolio layer" method to non-prepayable financial assets. ASU 2022-01 also permits multiple hedged layers to be designated as a single closed portfolio to achieve hedge accounting. Additionally, the ASU requires that basis adjustments must be maintained on the closed portfolio of assets as a whole, and not allocated to individual assets for active portfolio layer method hedges. ASU 2022-01 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. FHN is evaluating the impact of ASU 2022-01 on its future hedging strategies. ASU 2022-02 Also in March 2022, the FASB issued ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosu res” that eliminates current TDR recognition and measurement guidance and instead requires the Company to evaluate whether the modification represents a new loan or a continuation of an existing loan (which is consistent with the accounting for other loan modifications). The provisions of ASU 2022-02 also enhance existing disclosure requirements and introduces new disclosures related to certain modifications made to borrowers experiencing financial difficulty. The provisions of this ASU also require FHN to disclose current period gross write-offs of loans and leases by year of origination. |
Determination of Fair Value | FHN groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. This hierarchy requires FHN to maximize the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Each fair value measurement is placed into the proper level based on the lowest level of significant input. These levels are: • Level 1 —Valuation is based upon quoted prices for identical instruments traded in active markets. • Level 2 —Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 —Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques. Trading Securities - SBA interest-only strips Increases (decreases) in estimated prepayment rates and bond equivalent yields negatively (positively) affect the value of SBA interest-only strips. Management additionally considers whether the loans underlying related SBA interest-only strips are delinquent, in default or prepaying, and adjusts the fair value down 20 - 100% depending on the length of time in default. SBA interest-only strips were transferred from AFS to trading securities on October 1, 2021. Loans held for sale Foreclosure losses and prepayment rates are significant unobservable inputs used in the fair value measurement of FHN’s residential real estate loans held for sale. Loss severity trends are also assessed to evaluate the reasonableness of fair value estimates resulting from discounted cash flows methodologies as well as to estimate fair value for newly repurchased loans and loans that are near foreclosure. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. All observable and unobservable inputs are re-assessed quarterly. Increases (decreases) in estimated prepayment rates and bond equivalent yields negatively (positively) affect the value of unguaranteed interests in SBA loans. Unguaranteed interest in SBA loans held for sale are carried at less than the outstanding balance due to credit risk estimates. Credit risk adjustments may be reduced if prepayment is likely or as consistent payment history is realized. Management also considers other factors such as delinquency or default and adjusts the fair value accordingly. Loans held for investment Constant prepayment rate, constant default rate and loss severity trends are significant unobservable inputs used in the fair value measurement of loans held for investment. Increases (decreases) in each of these inputs in isolation result in negative (positive) effects on the valuation of the associated loans. Derivative liabilities In conjunction with pre-2020 sales of Visa Class B shares, FHN and the purchasers entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. FHN uses a discounted cash flow methodology in order to estimate the fair value of FHN’s derivative liabilities associated with its prior sales of Visa Class B shares. The methodology includes estimation of both the resolution amount for Visa’s Covered Litigation matters as well as the length of time until the resolution occurs. Significant increases (decreases) in either of these inputs in isolation would result in significantly higher (lower) fair value measurements for the derivative liabilities. Additionally, FHN performs a probability weighted multiple resolution scenario to calculate the estimated fair value of these derivative liabilities. Assignment of higher (lower) probabilities to the larger potential resolution scenarios would result in an increase (decrease) in the estimated fair value of the derivative liabilities. Since this estimation process requires application of judgment in developing significant unobservable inputs used to determine the possible outcomes and the probability weighting assigned to each scenario, these derivatives have been classified within Level 3 in fair value measurements disclosures. Loans and leases and Other Real Estate Owned Collateral-dependent loans and OREO are primarily valued using appraisals based on sales of comparable properties in the same or similar markets. Other collateral (receivables, inventory, equipment, etc.) is valued through borrowing base certificates, financial statements and/or auction valuations. These valuations are discounted based on the quality of reporting, knowledge of the marketability/collectability of the collateral and historical disposition rates. Other assets – tax credit investments The estimated fair value of tax credit investments accounted for under the equity method is generally determined in relation to the yield (i.e., future tax credits to be received) an acquirer of these investments would expect in relation to the yields experienced on current new issue and/or secondary market transactions. Thus, as tax credits are recognized, the future yield to a market participant is reduced, resulting in consistent impairment of the individual investments. Individual investments are reviewed for impairment quarterly, which may include the consideration of additional marketability discounts related to specific investments which typically includes consideration of the underlying property’s appraised value. Fair Value Option FHN has elected the fair value option on a prospective basis for substantially all types of mortgage loans originated for sale purposes except for mortgage origination operations which utilize the platform acquired from CBF. FHN determined that the election reduces certain timing differences and better matches changes in the value of such loans with changes in the value of derivatives and forward delivery commitments used as economic hedges for these assets at the time of election. Repurchased loans relating to mortgage banking operations conducted prior to the IBKC merger are recognized within loans held for sale at fair value at the time of repurchase, which includes consideration of the credit status of the loans and the estimated liquidation value. FHN has elected to continue recognition of these loans at fair value in periods subsequent to reacquisition. Due to the credit-distressed nature of the vast majority of repurchased loans and the related loss severities experienced upon repurchase, FHN believes that the fair value election provides a more timely recognition of changes in value for these loans that occur subsequent to repurchase. Absent the fair value election, these loans would be subject to valuation at the LOCOM value, which would prevent subsequent values from exceeding the initial fair value, determined at the time of repurchase, but would require recognition of subsequent declines in value. Thus, the fair value election provides for a more timely recognition of any potential future recoveries in asset values while not affecting the requirement to recognize subsequent declines in value. FHN also had a portion of mortgage loans held for investment for which the fair value option was elected upon origination and which were accounted for at fair value. This portion of mortgage loans held for investment at fair value option was transferred to the loans held for sale portfolio on April 1, 2021. Determination of Fair Value Fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following describes the assumptions and methodologies used to estimate the fair value of financial instruments recorded at fair value in the Consolidated Balance Sheets and for estimating the fair value of financial instruments for which fair value is disclosed. Short-term financial assets Federal funds sold, securities purchased under agreements to resell, and interest-bearing deposits with other financial institutions and the Federal Reserve are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization. Trading securities and trading liabilities Trading securities and trading liabilities are recognized at fair value through current earnings. Trading inventory held for broker-dealer operations is included in trading securities and trading liabilities. Broker-dealer long positions are valued at bid price in the bid-ask spread. Short positions are valued at the ask price. Inventory positions are valued using observable inputs including current market transactions, benchmark yields, credit spreads, and consensus prepayment speeds. Trading loans are valued using observable inputs including current market transactions, swap rates, mortgage rates, and consensus prepayment speeds. Trading Securities - SBA interest-only strips Interest-only strips are valued at elected fair value based on an income approach using an internal valuation model. The internal valuation model includes assumptions regarding projections of future cash flows, prepayment rates, default rates and interest-only strip terms. These securities bear the risk of loan prepayment or default that may result in FHN not recovering all or a portion of its recorded investment. When appropriate, valuations are adjusted for various factors including default or prepayment status of the underlying SBA loans. Because of the inherent uncertainty of valuation, those estimated values may be higher or lower than the values that would have been used had a ready market for the securities existed, and may change in the near term. SBA interest-only strips were transferred from AFS to trading on October 1, 2021. Securities available for sale and held to maturity Valuations of debt securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include benchmark yields, consensus prepayment speeds, and credit spreads. Trades from similar securities and broker quotes are used to support these valuations. Loans held for sale FHN determines the fair value of loans held for sale using either current transaction prices or discounted cash flow models. Fair values are determined using current transaction prices and/or values on similar assets when available, including committed bids for specific loans or loan portfolios. Uncommitted bids may be adjusted based on other available market information. Fair value of residential real estate loans held for sale determined using a discounted cash flow model incorporates both observable and unobservable inputs. Inputs in the discounted cash flow model include current mortgage rates for similar products, estimated prepayment rates, foreclosure losses, and various loan performance measures (delinquency, LTV, credit score). Adjustments for delinquency and other differences in loan characteristics are typically reflected in the model’s discount rates. Loss severity trends and the value of underlying collateral are also considered in assessing the appropriate fair value for severely delinquent loans and loans in foreclosure. The valuation of HELOCs also incorporates estimated cancellation rates for loans expected to become delinquent. Non-mortgage consumer loans held for sale are valued using committed bids for specific loans or loan portfolios or current market pricing for similar assets with adjustments for differences in credit standing (delinquency, historical default rates for similar loans), yield, collateral values and prepayment rates. If pricing for similar assets is not available, a discounted cash flow methodology is utilized, which incorporates all of these factors into an estimate of investor required yield for the discount rate. FHN utilizes quoted market prices of similar instruments or broker and dealer quotations to value the SBA and USDA guaranteed loans. FHN values SBA-unguaranteed interests in loans held for sale based on individual loan characteristics, such as industry type and pay history which generally follows an income approach. Furthermore, these valuations are adjusted for changes in prepayment estimates and are reduced due to restrictions on trading. The fair value of other non-residential real estate loans held for sale is approximated by their carrying values based on current transaction values. Mortgage loans held for investment at fair value option The fair value of mortgage loans held for investment at fair value option is determined by a third party using a discounted cash flow model using various assumptions about future loan performance (constant prepayment rate, constant default rate and loss severity trends) and market discount rates. Loans held for investment The fair values of mortgage loans are estimated using an exit price methodology that is based on present values using the interest rate that would be charged for a similar loan to a borrower with similar risk, weighted for varying maturity dates and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. Other loans and leases are valued based on present values using the interest rate that would be charged for a similar instrument to a borrower with similar risk, applicable to each category of instruments, and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. For loans measured using the estimated fair value of collateral less costs to sell, fair value is estimated using appraisals of the collateral. Collateral values are monitored and additional write-downs are recognized if it is determined that the estimated collateral values have declined further. Estimated costs to sell are based on current amounts of disposal costs for similar assets. Carrying value is considered to reflect fair value for these loans. Derivative assets and liabilities The fair value for forwards and futures contracts is based on current transactions involving identical securities. Futures contracts are exchange-traded and thus have no credit risk factor assigned as the risk of non-performance is limited to the clearinghouse used. Valuations of other derivatives (primarily interest rate contracts) are based on inputs observed in active markets for similar instruments. Typical inputs include benchmark yields, option volatility and option skew. Starting in October 2020, centrally cleared derivatives are discounted using SOFR as required by clearinghouses. In measuring the fair value of these derivative assets and liabilities, FHN has elected to consider credit risk based on the net exposure to individual counterparties. Credit risk is mitigated for these instruments through the use of mutual margining and master netting agreements as well as collateral posting requirements. For derivative contracts with daily cash margin requirements that are considered settlements, the daily margin amount is netted within derivative assets or liabilities. Any remaining credit risk related to interest rate derivatives is considered in determining fair value through evaluation of additional factors such as client loan grades and debt ratings. Foreign currency related derivatives also utilize observable exchange rates in the determination of fair value. The determination of fair value for FHN’s derivative liabilities associated with its prior sales of Visa Class B shares are classified within Level 3 in the fair value measurements disclosure as previously discussed in the unobservable inputs discussion. The fair value of risk participations is determined in reference to the fair value of the related derivative contract between the borrower and the lead bank in the participation structure, which is determined consistent with the valuation process discussed above. This value is adjusted for the pro rata portion of the reference derivative’s notional value and an assessment of credit risk for the referenced borrower. OREO OREO primarily consists of properties that have been acquired in satisfaction of debt. These properties are carried at the lower of the outstanding loan amount or estimated fair value less estimated costs to sell the real estate. Estimated fair value is determined using appraised values with subsequent adjustments for deterioration in values that are not reflected in the most recent appraisal. Other assets For disclosure purposes, other assets consist of tax credit investments, FRB and FHLB Stock, deferred compensation mutual funds and equity investments (including other mutual funds) with readily determinable fair values. Tax credit investments accounted for under the equity method are written down to estimated fair value quarterly based on the estimated value of the associated tax credits which incorporates estimates of required yield for hypothetical investors. The fair value of all other tax credit investments is estimated using recent transaction information with adjustments for differences in individual investments. Deferred compensation mutual funds are recognized at fair value, which is based on quoted prices in active markets. Investments in the stock of the Federal Reserve Bank and Federal Home Loan Banks are recognized at historical cost in the Consolidated Balance Sheets which is considered to approximate fair value. Investments in mutual funds are measured at the funds’ reported closing net asset values. Investments in equity securities are valued using quoted market prices when available. Defined maturity deposits The fair value of these deposits is estimated by discounting future cash flows to their present value. Future cash flows are discounted by using the current market rates of similar instruments applicable to the remaining maturity. For disclosure purposes, defined maturity deposits include all time deposits. Short-term financial liabilities The fair value of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings are approximated by the book value. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization. Loan commitments Fair values of these commitments are based on fees charged to enter into similar agreements taking into account the remaining terms of the agreements and the counterparties’ credit standing. Other commitments Fair values of these commitments are based on fees charged to enter into similar agreements. The following fair value estimates are determined as of a specific point in time utilizing various assumptions and estimates. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, reduces the comparability of fair value disclosures between financial institutions. Due to market illiquidity, the fair values for loans and leases, loans held for sale, and term borrowings as of June 30, 2022 and December 31, 2021, involve the use of significant internally-developed pricing assumptions for certain components of these line items. The assumptions and valuations utilized for this disclosure are considered to reflect inputs that market participants would use in transactions involving these instruments as of the measurement date. The valuations of legacy assets, particularly consumer loans and TRUPS loans within the Corporate segment, are influenced by changes in economic conditions since origination and risk perceptions of the financial sector. These considerations affect the estimate of a potential acquirer’s cost of capital and cash flow volatility assumptions from these assets and the resulting fair value measurements may depart significantly from FHN’s internal estimates of the intrinsic value of these assets. Assets and liabilities that are not financial instruments have not been included in the following table such as the value of long-term relationships with deposit and trust clients, premises and equipment, goodwill and other |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Marketable Securities [Abstract] | |
Schedule of FHN's Investment Securities | The following tables summarize FHN’s investment securities as of June 30, 2022 and December 31, 2021: INVESTMENT SECURITIES AT JUNE 30, 2022 June 30, 2022 (Dollars in millions) Amortized Gross Gross Fair Securities available for sale: Government agency issued MBS $ 5,268 $ 2 $ (491) $ 4,779 Government agency issued CMO 2,867 — (241) 2,626 Other U.S. government agencies 1,071 1 (98) 974 States and municipalities 623 — (61) 562 Total securities available for sale (a) $ 9,829 $ 3 $ (891) $ 8,941 Securities held to maturity: Government agency issued MBS 486 — (62) 424 Government agency issued CMO 201 — (24) 177 Total securities held to maturity $ 687 $ — $ (86) $ 601 (a) Includes $6.5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. INVESTMENT SECURITIES AT YE 2021 December 31, 2021 (Dollars in millions) Amortized Gross Gross Fair Securities available for sale: Government agency issued MBS $ 5,062 $ 42 $ (49) $ 5,055 Government agency issued CMO 2,296 8 (47) 2,257 Other U.S. government agencies 861 4 (15) 850 States and municipalities 535 11 (1) 545 Total securities available for sale (a) $ 8,754 $ 65 $ (112) $ 8,707 Securities held to maturity: Government agency issued MBS $ 509 $ — $ (5) $ 504 Government agency issued CMO 203 — (2) 201 Total securities held to maturity $ 712 $ — $ (7) $ 705 (a) Includes $6.5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. |
Schedule of Amortized Cost And Fair Value By Contractual Maturity | The amortized cost and fair value by contractual maturity for the debt securities portfolio as of June 30, 2022 is provided below: DEBT SECURITIES PORTFOLIO MATURITIES Held to Maturity Available for Sale (Dollars in millions) Amortized Fair Amortized Fair Within 1 year $ — $ — $ 50 $ 50 After 1 year through 5 years — — 122 117 After 5 years through 10 years — — 347 319 After 10 years — — 1,176 1,050 Subtotal — — 1,695 1,536 Government agency issued MBS and CMO (a) 687 601 8,135 7,405 Total $ 687 $ 601 $ 9,830 $ 8,941 (a) Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. |
Schedule of Investments Within The Available For Sale Portfolio That Had Unrealized Losses | The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of June 30, 2022 and December 31, 2021: AFS INVESTMENT SECURITIES WITH UNREALIZED LOSSES As of June 30, 2022 Less than 12 months 12 months or longer Total (Dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized Government agency issued MBS $ 3,887 $ (362) $ 787 $ (129) $ 4,674 $ (491) Government agency issued CMO 1,695 (115) 819 (126) 2,514 (241) Other U.S. government agencies 664 (65) 203 (33) 867 (98) States and municipalities 510 (59) 7 (2) 517 (61) Total $ 6,756 $ (601) $ 1,816 $ (290) $ 8,572 $ (891) As of December 31, 2021 Less than 12 months 12 months or longer Total (Dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized Government agency issued MBS $ 2,973 $ (41) $ 184 $ (8) $ 3,157 $ (49) Government agency issued CMO 1,436 (37) 248 (10) 1,684 (47) Other U.S. government agencies 459 (11) 90 (4) 549 (15) States and municipalities 68 (1) — — 68 (1) Total $ 4,936 $ (90) $ 522 $ (22) $ 5,458 $ (112) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule Of Loans By Portfolio Segment | The following table provides the amortized cost basis of loans and leases by portfolio segment and class as of June 30, 2022 and December 31, 2021, excluding accrued interest of $152 million and $134 million, respectively, which is included in other assets in the Consolidated Balance Sheets. LOANS AND LEASES BY PORTFOLIO SEGMENT (Dollars in millions) June 30, 2022 December 31, 2021 Commercial: Commercial and industrial (a) (b) $ 27,835 $ 26,550 Loans to mortgage companies 3,441 4,518 Total commercial, financial, and industrial 31,276 31,068 Commercial real estate 12,942 12,109 Consumer: HELOC 1,917 1,964 Real estate installment loans 9,524 8,808 Total consumer real estate 11,441 10,772 Credit card and other 870 910 Loans and leases $ 56,529 $ 54,859 Allowance for loan and lease losses (624) (670) Net loans and leases $ 55,905 $ 54,189 (a) Includes equipment financing leases of $897 million and $792 million as of June 30, 2022 and December 31, 2021, respectively. (b) Includes PPP loans fully guaranteed by the SBA of $375 million and $1.0 billion as of June 30, 2022 and December 31, 2021, respectively. |
Financing Receivable Credit Quality Indicators | The following tables provide the amortized cost basis of the commercial loan portfolio by year of origination and credit quality indicator as of June 30, 2022 and December 31, 2021: C&I PORTFOLIO June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 LMC (a) Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) (c) $ 2,945 $ 5,229 $ 2,354 $ 2,613 $ 1,268 $ 3,611 $ 3,441 $ 8,670 $ 498 $ 30,629 Special Mention (PD grade 13) — 18 8 35 23 72 — 80 24 260 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 4 13 27 4 58 103 — 93 85 387 Total C&I loans $ 2,949 $ 5,260 $ 2,389 $ 2,652 $ 1,349 $ 3,786 $ 3,441 $ 8,843 $ 607 $ 31,276 December 31, 2021 (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 LMC (a) Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) (c) $ 7,372 $ 3,576 $ 3,439 $ 1,455 $ 1,193 $ 2,267 $ 4,518 $ 6,386 $ 13 $ 30,219 Special Mention (PD grade 13) 25 39 50 48 36 43 — 100 4 345 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 24 61 67 103 24 48 — 129 48 504 Total C&I loans $ 7,421 $ 3,676 $ 3,556 $ 1,606 $ 1,253 $ 2,358 $ 4,518 $ 6,615 $ 65 $ 31,068 (a) LMC includes non-revolving commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower's sale of those mortgage loans to third party investors. The loans are of short duration with maturities less than one year. (b) C&I loans were converted from revolving to term in 2022 and 2021 were not material. (c) Balances include PPP loans. CRE PORTFOLIO June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Revolving Revolving Loans Converted to Term Loans Total Credit Quality Indicator: Pass (PD grades 1 through 12) $ 1,531 $ 3,065 $ 1,651 $ 2,300 $ 1,071 $ 3,035 $ 243 $ 15 $ 12,911 Special Mention (PD grade 13) — — — — — 19 — — 19 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) — — — — 1 — 11 — 12 Total CRE loans $ 1,531 $ 3,065 $ 1,651 $ 2,300 $ 1,072 $ 3,054 $ 254 $ 15 $ 12,942 December 31, 2021 (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Loans Converted to Term Loans Total Credit Quality Indicator: Pass (PD grades 1 through 12) $ 3,441 $ 2,065 $ 2,514 $ 929 $ 691 $ 1,822 $ 204 $ — $ 11,666 Special Mention (PD grade 13) 4 26 52 125 20 65 — — 292 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 47 — 24 3 33 32 12 — 151 Total CRE loans $ 3,492 $ 2,091 $ 2,590 $ 1,057 $ 744 $ 1,919 $ 216 $ — $ 12,109 CONSUMER REAL ESTATE PORTFOLIO June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Revolving Revolving Total FICO score 740 or greater $ 1,290 $ 1,928 $ 878 $ 568 $ 305 $ 1,404 $ 1,100 $ 75 $ 7,548 FICO score 720-739 177 267 120 105 38 250 172 21 1,150 FICO score 700-719 157 220 101 62 40 226 149 26 981 FICO score 660-699 117 141 93 62 66 298 204 26 1,007 FICO score 620-659 10 27 27 45 21 111 56 10 307 FICO score less than 620 13 19 30 13 25 270 61 17 448 Total $ 1,764 $ 2,602 $ 1,249 $ 855 $ 495 $ 2,559 $ 1,742 $ 175 $ 11,441 December 31, 2021 (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Loans Converted to Term Loans (a) Total FICO score 740 or greater $ 1,594 $ 1,156 $ 825 $ 473 $ 394 $ 1,335 $ 1,086 $ 115 $ 6,978 FICO score 720-739 236 171 109 61 44 209 162 21 1,013 FICO score 700-719 143 112 81 68 45 153 141 23 766 FICO score 660-699 164 131 120 106 44 246 204 44 1,059 FICO score 620-659 42 36 55 23 13 118 66 27 380 FICO score less than 620 26 84 42 32 45 272 42 33 576 Total $ 2,205 $ 1,690 $ 1,232 $ 763 $ 585 $ 2,333 $ 1,701 $ 263 $ 10,772 (a) $3 million and $43 million of HELOC loans were converted from revolving to term in 2022 and 2021, respectively. The following tables reflect the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of June 30, 2022 and December 31, 2021. CREDIT CARD & OTHER PORTFOLIO June 30, 2022 (Dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Revolving Revolving Total FICO score 740 or greater $ 26 $ 20 $ 17 $ 11 $ 4 $ 16 $ 295 $ 7 $ 396 FICO score 720-739 5 3 2 2 1 1 39 1 54 FICO score 700-719 4 4 2 1 1 1 37 1 51 FICO score 660-699 8 2 2 1 2 2 39 1 57 FICO score 620-659 3 2 1 — 1 1 19 — 27 FICO score less than 620 71 7 6 10 7 6 177 1 285 Total $ 117 $ 38 $ 30 $ 25 $ 16 $ 27 $ 606 $ 11 $ 870 December 31, 2021 (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Loans Converted to Term Loans (a) Total FICO score 740 or greater $ 56 $ 35 $ 29 $ 23 $ 13 $ 56 $ 200 $ 11 $ 423 FICO score 720-739 14 5 4 3 4 17 46 3 96 FICO score 700-719 8 5 4 4 3 17 42 1 84 FICO score 660-699 25 6 5 6 4 31 98 2 177 FICO score 620-659 4 3 2 4 3 18 22 1 57 FICO score less than 620 24 3 3 4 4 16 18 1 73 Total $ 131 $ 57 $ 47 $ 44 $ 31 $ 155 $ 426 $ 19 $ 910 (a) $1 million and $9 million of other consumer loans were converted from revolving to term in 2022 and 2021, respectively. |
Accruing And Non-Accruing Loans By Class | The following table reflects accruing and non-accruing loans and leases by class on June 30, 2022 and December 31, 2021: ACCRUING & NON-ACCRUING LOANS AND LEASES June 30, 2022 Accruing Non-Accruing (Dollars in millions) Current 30-89 90+ Total Current 30-89 90+ Total Total Commercial, financial, and industrial: C&I (a) $ 27,678 $ 28 $ — $ 27,706 $ 80 $ — $ 49 $ 129 $ 27,835 Loans to mortgage companies 3,441 — — 3,441 — — — — 3,441 Total commercial, financial, and industrial 31,119 28 — 31,147 80 — 49 129 31,276 Commercial real estate: CRE (b) 12,903 28 — 12,931 9 — 2 11 12,942 Consumer real estate: HELOC (c) 1,857 9 6 1,872 34 2 9 45 1,917 Real estate installment loans (d) 9,367 35 8 9,410 56 9 49 114 9,524 Total consumer real estate 11,224 44 14 11,282 90 11 58 159 11,441 Credit card and other: Credit card 272 3 3 278 — — — — 278 Other 587 3 — 590 2 — — 2 592 Total credit card and other 859 6 3 868 2 — — 2 870 Total loans and leases $ 56,105 $ 106 $ 17 $ 56,228 $ 181 $ 11 $ 109 $ 301 $ 56,529 December 31, 2021 Accruing Non-Accruing (Dollars in millions) Current 30-89 90+ Total Current 30-89 90+ Total Total Commercial, financial, and industrial: C&I (a) $ 26,367 $ 53 $ 5 $ 26,425 $ 97 $ 1 $ 27 $ 125 $ 26,550 Loans to mortgage companies 4,518 — — 4,518 — — — — 4,518 Total commercial, financial, and industrial 30,885 53 5 30,943 97 1 27 125 31,068 Commercial real estate: CRE (b) 12,087 13 — 12,100 6 1 2 9 12,109 Consumer real estate: HELOC (c) 1,906 7 6 1,919 34 2 9 45 1,964 Real estate installment loans (d) 8,658 30 27 8,715 44 3 46 93 8,808 Total consumer real estate 10,564 37 33 10,634 78 5 55 138 10,772 Credit card and other: Credit card 292 2 2 296 — — — — 296 Other 608 3 — 611 1 — 2 3 614 Total credit card and other 900 5 2 907 1 — 2 3 910 Total loans and leases $ 54,436 $ 108 $ 40 $ 54,584 $ 182 $ 7 $ 86 $ 275 $ 54,859 (a) $123 million and $99 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2022 and 2021, respectively. (b) $6 million and $5 million of CRE loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2022 and 2021, respectively. (c) $6 million and $7 million of HELOC loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2022 and 2021, respectively. (d) $8 million and $50 million of real estate installment loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2022 and 2021, respectively. |
Schedule Of Troubled Debt Restructurings Occurring During The Year | The following table presents the end of period balance for loans modified in a TDR during the periods indicated: LOANS MODIFIED IN A TDR Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (Dollars in millions) Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment C&I — $ — $ — 10 $ 19 $ 19 CRE — — — — — — HELOC 42 3 3 7 — — Real estate installment loans 95 24 24 26 6 6 Credit card and other 8 — — 15 — — Total TDRs 145 $ 27 $ 27 58 $ 25 $ 25 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (Dollars in millions) Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment C&I 3 $ — $ — 27 $ 28 $ 27 CRE — — — 1 12 10 HELOC 56 5 5 19 2 2 Real estate installment loans 181 40 40 35 8 8 Credit card and other 9 — — 28 — — Total TDRs 249 $ 45 $ 45 110 $ 50 $ 47 |
Schedule Of Troubled Debt Restructurings Within The Previous 12 Months | The following table presents TDRs which re-defaulted during the three and six months ended June 30, 2022 and 2021, a nd as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due. LOANS MODIFIED IN A TDR THAT RE-DEFAULTED Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (Dollars in millions) Number Recorded Number Recorded C&I 2 $ — 5 $ 1 CRE — — 2 9 HELOC — — — — Real estate installment loans 6 1 4 1 Credit card and other 1 — 1 — Total TDRs 9 $ 1 12 $ 11 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (Dollars in millions) Number Recorded Number Recorded C&I 5 $ — 12 $ 2 CRE — — 2 9 HELOC — — 1 — Real estate installment loans 6 1 7 3 Credit card and other 9 — 1 — Total TDRs 20 $ 1 23 $ 14 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Rollforward Of The Allowance For Loan Losses By Portfolio Segment | The following table provides a rollforward of the ALLL and the reserve for unfunded lending commitments by portfolio type for the three and six months ended June 30, 2022 and 2021: ROLLFORWARD OF ALLL & RESERVE FOR UNFUNDED LENDING COMMITMENTS (Dollars in millions) Commercial, Financial, and Industrial (a) Commercial Real Estate Consumer Real Estate Credit Card and Other Total Three Months Ended June 30, 2022 Allowance for loan and lease losses: Balance as of April 1, 2022 $ 287 $ 151 $ 164 $ 20 $ 622 Charge-offs (12) — (2) (7) (21) Recoveries 1 1 6 1 9 Provision for loan and lease losses (2) (11) 15 12 14 Balance as of June 30, 2022 $ 274 $ 141 $ 183 $ 26 $ 624 Reserve for remaining unfunded commitments: Balance as of April 1, 2022 43 12 9 — 64 Provision for remaining unfunded commitments 10 5 1 — 16 Balance as of June 30, 2022 53 17 10 — 80 Allowance for credit losses as of June 30, 2022 $ 327 $ 158 $ 193 $ 26 $ 704 Three Months Ended June 30, 2021 Allowance for loan and lease losses: Balance as of April 1, 2021 $ 442 $ 232 $ 222 $ 18 $ 914 Charge-offs (2) — (1) (3) (6) Recoveries 5 1 8 2 16 Provision for loan losses (60) (23) (26) — (109) Balance as of June 30, 2021 $ 385 $ 210 $ 203 $ 17 $ 815 Reserve for remaining unfunded commitments: Balance as of April 1, 2021 $ 62 $ 11 $ 8 $ — $ 81 Provision for remaining unfunded commitments (5) (2) 1 — (6) Balance as of June 30, 2021 $ 57 9 9 — $ 75 Allowance for credit losses as of June 30, 2021 $ 442 $ 219 $ 212 $ 17 $ 890 Six Months Ended June 30, 2022 Allowance for loan and lease losses: Balance as of January 1, 2022 $ 334 $ 154 $ 163 $ 19 $ 670 Charge-offs (25) — (3) (12) (40) Recoveries 4 1 11 2 18 Provision for loan and lease losses (39) (14) 12 17 (24) Balance as of June 30, 2022 $ 274 $ 141 $ 183 $ 26 $ 624 Reserve for remaining unfunded commitments: Balance as of January 1, 2022 $ 46 $ 12 $ 8 $ — $ 66 Provision for remaining unfunded commitments 7 5 2 — 14 Balance as of June 30, 2022 $ 53 $ 17 $ 10 $ — $ 80 Allowance for credit losses as of June 30, 2022 $ 327 $ 158 $ 193 $ 26 $ 704 Six Months Ended June 30, 2021 Allowance for loan and lease losses: Balance as of January 1, 2021 $ 453 $ 242 $ 242 $ 26 $ 963 Charge-offs (16) (3) (4) (6) (29) Recoveries 11 3 14 3 31 Provision for loan and lease losses (63) (32) (49) (6) (150) Balance as of June 30, 2021 $ 385 $ 210 $ 203 $ 17 $ 815 Reserve for remaining unfunded commitments: Balance as of January 1, 2021 $ 65 $ 10 $ 10 $ — $ 85 Provision for remaining unfunded commitments (8) (1) (1) — (10) Balance as of June 30, 2021 57 9 9 — 75 Allowance for credit losses as of June 30, 2021 $ 442 $ 219 $ 212 $ 17 $ 890 (a) C&I loans as of June 30, 2022 and 2021 include $375 million and $3.8 billion in PPP loans, respectively, which due to the government guarantee and forgiveness provisions are considered to have no credit risk and therefore have no allowance for loan and lease losses. |
Mortgage Banking Activity (Tabl
Mortgage Banking Activity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Banking [Abstract] | |
Schedule of Residential Mortgage Loans Held For Sale | The following table summarizes activity relating to residential mortgage loans held for sale as of the six months ended June 30, 2022 and the year ended December 31, 2021. MORTGAGE LOANS HELD FOR SALE (Dollars in millions) June 30, 2022 December 31, 2021 Balance at beginning of period $ 250 $ 409 Originations and purchases 902 2,836 Sales, net of gains (1,018) (3,025) Mortgage loans transferred from (to) held for investment — 30 Balance at end of period $ 134 $ 250 |
Schedule of Mortgage Servicing Rights | Mortgage servicing rights had the following carrying values as of the periods indicated. MORTGAGE SERVICING RIGHTS June 30, 2022 December 31, 2021 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Mortgage servicing rights $ 17 $ (4) $ 13 $ 39 $ (9) $ 30 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reportable Segment | The following is a summary of goodwill by reportable segment included in the Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021. GOODWILL (Dollars in millions) Regional Specialty Banking Total December 31, 2020 $ 880 $ 631 $ 1,511 Additions — — — December 31, 2021 $ 880 $ 631 $ 1,511 Additions — — — June 30, 2022 $ 880 $ 631 $ 1,511 |
Summary of Intangible Assets and Accumulated Amortization Included in the Consolidated Statements of Condition | The following table, which excludes fully amortized intangibles, presents other intangible assets included in the Consolidated Balance Sheets: OTHER INTANGIBLE ASSETS June 30, 2022 December 31, 2021 (Dollars in millions) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Core deposit intangibles $ 371 $ (150) $ 221 $ 371 $ (128) $ 243 Client relationships 37 (13) 24 37 (11) 26 Other (a) 36 (9) 27 41 (12) 29 Total $ 444 $ (172) $ 272 $ 449 $ (151) $ 298 (a) Includes non-compete covenants and purchased credit card intangible assets. Also includes title plant intangible assets and state banking licenses which are not subject to amortization. |
Preferred Stock (Tables)
Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table presents a summary of FHN's non-cumulative perpetual preferred stock: PREFERRED STOCK (Dollars in millions) June 30, 2022 December 31, 2021 Issuance Date Earliest Redemption Date (a) Annual Dividend Rate Dividend Payments Shares Outstanding Liquidation Amount Carrying Amount Carrying Amount Series B 7/2/2020 8/1/2025 6.625% (b) Semi-annually 8,000 $ 80 $ 77 $ 77 Series C 7/2/2020 5/1/2026 6.600% (c) Quarterly 5,750 58 59 59 Series D 7/2/2020 5/1/2024 6.100% (d) Semi-annually 10,000 100 94 94 Series E 5/28/2020 10/10/2025 6.500% Quarterly 1,500 150 145 145 Series F 5/3/2021 7/10/2026 4.700% Quarterly 1,500 150 145 145 Series G 2/28/2022 2/28/2027 N/A N/A 4,936 494 494 — 31,686 $ 1,032 $ 1,014 $ 520 N/A - not applicable (a) Denotes earliest optional redemption date. Earlier redemption is possible, at FHN's election, if certain regulatory capital events occur. (b) Fixed dividend rate will reset on August 1, 2025 to three-month LIBOR plus 4.262%. (c) Fixed dividend rate will reset on May 1, 2026 to three-month LIBOR plus 4.920%. (d) Fixed dividend rate will reset on May 1, 2024 to three-month LIBOR plus 3.859%. |
Components of Other Comprehen_2
Components of Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | The following table provides the changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2022 and 2021: ACCUMULATED OTHER COMPREHENSIVE INCOME (Dollars in millions) Securities AFS Cash Flow Hedges Pension and Total Balance as of April 1, 2022 $ (440) $ (18) $ (253) $ (711) Net unrealized gains (losses) (231) (25) — (256) Amounts reclassified from AOCI — 3 1 4 Other comprehensive income (loss) (231) (22) 1 (252) Balance as of June 30, 2022 $ (671) $ (40) $ (252) $ (963) (Dollars in millions) Securities AFS Cash Flow Hedges Pension and Total Balance as of January 1, 2022 $ (36) $ 3 $ (255) $ (288) Net unrealized gains (losses) (635) (45) — (680) Amounts reclassified from AOCI — 2 3 5 Other comprehensive income (loss) (635) (43) 3 (675) Balance as of June 30, 2022 $ (671) $ (40) $ (252) $ (963) (Dollars in millions) Securities AFS Cash Flow Hedges Pension and Total Balance as of April 1, 2021 $ 5 $ 10 $ (256) $ (241) Net unrealized gains (losses) 38 — — 38 Amounts reclassified from AOCI — (2) 2 — Other comprehensive income (loss) 38 (2) 2 38 Balance as of June 30, 2021 $ 43 $ 8 $ (254) $ (203) (Dollars in millions) Securities AFS Cash Flow Hedges Pension and Total Balance as of January 1, 2021 $ 108 $ 12 $ (260) $ (140) Net unrealized gains (losses) (65) (1) 3 (63) Amounts reclassified from AOCI — (3) 3 — Other comprehensive income (loss) (65) (4) 6 (63) Balance as of June 30, 2021 $ 43 $ 8 $ (254) $ (203) |
Reclassification Out Of Accumulated Other Comprehensive Income | Reclassifications from AOCI, and related tax effects, were as follows: RECLASSIFICATIONS FROM AOCI (Dollars in millions) Three Months Ended Six Months Ended Details about AOCI 2022 2021 2022 2021 Affected line item in the statement where net Cash Flow Hedges: Realized (gains) losses on cash flow hedges $ 4 $ (2) $ 3 $ (4) Interest and fees on loans and leases Tax expense (benefit) (1) — (1) 1 Income tax expense 3 (2) 2 (3) Pension and Postretirement Plans: Amortization of prior service cost and net actuarial (gain) loss 2 2 4 4 Other expense Tax expense (benefit) (1) — (1) (1) Income tax expense 1 2 3 3 Total reclassification from AOCI $ 4 $ — $ 5 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation Of Earnings/(Loss) Per Common And Diluted Share | The computations of basic and diluted earnings per common share were as follows: EARNINGS PER SHARE COMPUTATIONS Three Months Ended Six Months Ended (Dollars in millions, except per share data; shares in thousands) 2022 2021 2022 2021 Net income $ 177 $ 311 $ 374 $ 546 Net income attributable to noncontrolling interest 3 3 6 6 Net income attributable to controlling interest 174 308 368 540 Preferred stock dividends 8 13 16 21 Net income available to common shareholders $ 166 $ 295 $ 352 $ 519 Weighted average common shares outstanding—basic 534,604 550,297 533,915 551,268 Effect of dilutive restricted stock, performance equity awards and options 7,319 5,913 7,223 5,230 Effect of dilutive convertible preferred stock (a) 27,512 — 18,696 — Weighted average common shares outstanding—diluted 569,435 556,210 559,834 556,498 Basic earnings per common share $ 0.31 $ 0.54 $ 0.66 $ 0.94 Diluted earnings per common share $ 0.29 $ 0.53 $ 0.63 $ 0.93 |
Schedule of Anti-Dilutive Options and Awards | The following table presents average outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met: ANTI-DILUTIVE EQUITY AWARDS Three Months Ended Six Months Ended (Shares in thousands) 2022 2021 2022 2021 Stock options excluded from the calculation of diluted EPS 23 1,516 48 1,544 Weighted average exercise price of stock options excluded from the calculation of diluted EPS $ 27.88 $ 20.98 $ 25.60 $ 20.97 Other equity awards excluded from the calculation of diluted EPS 1,892 1,379 1,231 1,387 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for the three and six months ended June 30 were as follows: COMPONENTS OF NET PERIODIC BENEFIT COST Three months ended June 30, Six months ended June 30, (Dollars in millions) 2022 2021 2022 2021 Components of net periodic benefit cost Interest cost $ 5 $ 4 $ 10 $ 8 Expected return on plan assets (6) (4) (12) (8) Amortization of unrecognized: Actuarial (gain) loss 2 2 4 4 Other — — — 2 Net periodic benefit cost $ 1 $ 2 $ 2 $ 6 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables present financial information for each reportable business segment for the three and six months ended June 30, 2022 and 2021: SEGMENT FINANCIAL INFORMATION Three Months Ended June 30, 2022 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 465 $ 141 $ (64) $ 542 Provision for credit losses 52 (18) (4) 30 Noninterest income 114 96 (9) 201 Noninterest expense (a) 297 116 75 488 Income (loss) before income taxes 230 139 (144) 225 Income tax expense (benefit) 54 34 (40) 48 Net income (loss) $ 176 $ 105 $ (104) $ 177 Average assets $ 41,952 $ 20,227 $ 24,147 $ 86,326 Three Months Ended June 30, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 444 $ 153 $ (100) $ 497 Provision for credit losses (88) (21) (6) (115) Noninterest income 109 149 27 285 Noninterest expense (a) 270 145 83 498 Income (loss) before income taxes 371 178 (150) 399 Income tax expense (benefit) 87 43 (42) 88 Net income (loss) $ 284 $ 135 $ (108) $ 311 Average assets $ 42,352 $ 20,104 $ 25,103 $ 87,559 (a) 2022 and 2021 includes $38 million and $32 million, respectively, in merger and integration expenses related to the IBKC merger and Proposed TD Merger in the Corporate segment. Six Months Ended June 30, 2022 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 891 $ 285 $ (155) $ 1,021 Provision for credit losses 21 (21) (10) (10) Noninterest income 227 201 2 430 Noninterest expense (a) 598 252 132 982 Income (loss) before income taxes 499 255 (275) 479 Income tax expense (benefit) 117 62 (74) 105 Net income (loss) $ 382 $ 193 $ (201) $ 374 Average assets $ 41,251 $ 20,236 $ 25,963 $ 87,450 Six Months Ended June 30, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 875 $ 312 $ (183) $ 1,004 Provision for credit losses (117) (28) (15) (160) Noninterest income 210 335 38 583 Noninterest expense (a) 545 303 194 1,042 Income (loss) before income taxes 657 372 (324) 705 Income tax expense (benefit) 153 90 (84) 159 Net income (loss) $ 504 $ 282 $ (240) $ 546 Average assets $ 42,451 $ 20,825 $ 23,210 $ 86,486 (a) 2022 and 2021 includes $75 million and $102 million, respectively, in merger and integration expenses related to the IBKC merger and Proposed TD Merger in the Corporate segment. The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three and six months ended June 30, 2022 and 2021: NONINTEREST INCOME DETAIL BY SEGMENT Three months ended June 30, 2022 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ — $ 51 $ — $ 51 Deposit transactions and cash management 38 2 2 42 Mortgage banking and title income — 34 — 34 Brokerage, management fees and commissions 24 — — 24 Card and digital banking fees 21 — 2 23 Other service charges and fees 9 6 — 15 Trust services and investment management 12 — — 12 Deferred compensation income — — (17) (17) Other income (c) 10 3 4 17 Total noninterest income $ 114 $ 96 $ (9) $ 201 Three months ended June 30, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ — $ 102 $ — $ 102 Deposit transactions and cash management 39 3 2 44 Mortgage banking and title income — 38 — 38 Brokerage, management fees and commissions 21 — — 21 Card and digital banking fees 18 1 2 21 Other service charges and fees 6 4 1 11 Trust services and investment management 14 — — 14 Securities gains (losses), net (b) — — 11 11 Deferred compensation income — — 7 7 Other income (c) 11 1 4 16 Total noninterest income $ 109 $ 149 $ 27 $ 285 (a) 2022 and 2021 includes $10 million and $14 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b) Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c) Includes letter of credit fees and insurance commissions in scope of ASC 606. Six Months Ended June 30, 2022 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ — $ 124 $ — $ 124 Deposit transactions and cash management 77 5 4 86 Mortgage banking and title income — 56 — 56 Brokerage, management fees and commissions 48 — — 48 Card and digital banking fees 38 1 4 43 Other service charges and fees 16 11 1 28 Trust services and investment management 25 — — 25 Securities gains (losses), net (b) — — 6 6 Deferred compensation income — — (21) (21) Other income (c) 23 4 8 35 Total noninterest income $ 227 $ 201 $ 2 $ 430 Six Months Ended June 30, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ 1 $ 227 $ — $ 228 Deposit transactions and cash management 77 6 3 86 Mortgage banking and title income — 90 1 91 Brokerage, management fees and commissions 41 — — 41 Card and digital banking fees 32 2 4 38 Other service charges and fees 12 7 2 21 Trust services and investment management 26 — — 26 Securities gains (losses), net (b) — — 11 11 Deferred compensation income — — 9 9 Other income (c) 21 3 8 32 Total noninterest income $ 210 $ 335 $ 38 $ 583 (a) 2022 and 2021 includes $21 million and $24 million for 2022 and 2021, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b) Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Summary Of VIEs Consolidated By FHN | The following table summarizes the carrying value of assets and liabilities associated with rabbi trusts used for deferred compensation plans which are consolidated by FHN as of June 30, 2022 and December 31, 2021: CONSOLIDATED VIEs (Dollars in millions) June 30, 2022 December 31, 2021 Assets: Other assets $ 183 $ 205 Liabilities: Other liabilities $ 157 $ 179 |
Summary of the Impact of Qualifying LIHTC Investments | The following table summarizes the impact to income tax expense on the Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 for LIHTC investments accounted for under the proportional amortization method. LIHTC IMPACTS ON TAX EXPENSE Three Months Ended Six Months Ended (Dollars in millions) 2022 2021 2022 2021 Income tax expense (benefit): Amortization of qualifying LIHTC investments $ 11 $ 9 $ 21 $ 17 Low income housing tax credits (12) (8) (23) (17) Other tax benefits related to qualifying LIHTC investments (3) (3) (5) (5) |
Summary Of VIEs Not Consolidated By FHN | The following tables summarize FHN’s nonconsolidated VIEs as of June 30, 2022 and December 31, 2021: NONCONSOLIDATED VIEs AT JUNE 30, 2022 (Dollars in millions) Maximum Liability Classification Type Low income housing partnerships $ 417 $ 146 (a) Other tax credit investments (b) 88 68 Other assets Small issuer trust preferred holdings (c) 179 — Loans and leases On-balance sheet trust preferred securitization 27 87 (d) Holdings of agency mortgage-backed securities (c) 8,542 — (e) Commercial loan troubled debt restructurings (f) 57 — Loans and leases Proprietary trust preferred issuances (g) — 167 Term borrowings (a) Maximum loss exposure represents $271 million of current investments and $146 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are also recognized in other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024. (b) Maximum loss exposure represents the value of current investments. (c) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities. (d) Includes $112 million classified as loans and leases and $2 million classified as trading securities, which are offset by $87 million classified as term borrowings. (e) Includes $450 million classified as trading securities, $687 million classified as held to maturity and $7.4 billion classified as securities available for sale (f) Maximum loss exposure represents $57 million of current receivables with no additional contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring. (g) No exposure to loss due to nature of FHN's involvement. NONCONSOLIDATED VIEs AT DECEMBER 31, 2021 (Dollars in millions) Maximum Liability Classification Type Low income housing partnerships $ 382 $ 129 (a) Other tax credit investments (b) 77 56 Other assets Small issuer trust preferred holdings (c) 195 — Loans and leases On-balance sheet trust preferred securitization 27 87 (d) Holdings of agency mortgage-backed securities (c) 8,550 — (e) Commercial loan troubled debt restructurings (f) 98 — Loans and leases Proprietary trust preferred issuances (g) — 167 Term borrowings (a) Maximum loss exposure represents $253 million of current investments and $129 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are also recognized in other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024. (b) Maximum loss exposure represents current investments. (c) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities. (d) Includes $112 million classified as loans and leases and $2 million classified as trading securities, which are offset by $87 million classified as term borrowings. (e) Includes $526 million classified as trading securities, $712 million classified as held to maturity and $7.3 billion classified as securities available for sale. (f) Maximum loss exposure represents $94 million of current receivables and $4 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Associated With Fixed Income Trading Activities | The following tables summarize derivatives associated with FHNF's trading activities as of June 30, 2022 and December 31, 2021: DERIVATIVES ASSOCIATED WITH TRADING June 30, 2022 (Dollars in millions) Notional Assets Liabilities Customer interest rate contracts $ 3,183 $ 4 $ 194 Offsetting upstream interest rate contracts 3,183 29 2 Option contracts purchased 3 — — Forwards and futures purchased 3,262 14 7 Forwards and futures sold 3,513 7 14 December 31, 2021 (Dollars in millions) Notional Assets Liabilities Customer interest rate contracts $ 3,587 $ 84 $ 41 Offsetting upstream interest rate contracts 3,587 4 8 Option contracts purchased 13 — — Forwards and futures purchased 4,430 2 9 Forwards and futures sold 5,044 10 2 |
Derivatives Associated With Interest Rate Risk Management Activities | The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of June 30, 2022 and December 31, 2021: DERIVATIVES ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT June 30, 2022 (Dollars in millions) Notional Assets Liabilities Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts $ 8,232 $ 9 $ 352 Offsetting upstream interest rate contracts 8,232 68 8 December 31, 2021 (Dollars in millions) Notional Assets Liabilities Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts $ 8,037 $ 202 $ 29 Offsetting upstream interest rate contracts 8,037 4 15 |
Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities | The following table summarizes gains (losses) on FHN’s derivatives associated with interest rate risk management activities for the three and six months ended June 30, 2022 and 2021: DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT Three Months Ended Six Months Ended 2022 2021 2022 2021 (Dollars in millions) Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts (a) $ 163 $ 46 $ 517 $ (168) Offsetting upstream interest rate contracts (a) (163) (46) (517) 168 (a) Gains (losses) included in other expense within the Consolidated Statements of Income. |
Derivative Associated With Cash Flow Hedges | The following tables summarize FHN’s derivative activities associated with cash flow hedges as of June 30, 2022 and December 31, 2021: DERIVATIVES ASSOCIATED WITH CASH FLOW HEDGES June 30, 2022 (Dollars in millions) Notional Assets Liabilities Cash Flow Hedges Hedging Instruments: Interest rate contracts $ 3,850 $ 54 $ — Hedged Items: Variability in cash flows related to debt instruments (primarily loans) N/A $ 3,850 N/A December 31, 2021 (Dollars in millions) Notional Assets Liabilities Cash Flow Hedges Hedging Instruments: Interest rate contracts $ 1,100 $ 13 $ — Hedged Items: Variability in cash flows related to debt instruments (primarily loans) N/A $ 1,100 N/A |
Gains/(Losses) on Derivatives Associated with Cash Flow Hedges | The following table summarizes gains (losses) on FHN’s derivatives associated with cash flow hedges for the three and six months ended June 30, 2022 and 2021: DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH CASH FLOW HEDGES Three Months Ended Six Months Ended 2022 2021 2022 2021 (Dollars in millions) Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Cash Flow Hedges Hedging Instruments: Interest rate contracts (a) $ 37 $ (6) $ 69 $ (14) Gain (loss) recognized in other comprehensive income (loss) (25) — (45) (1) Gain (loss) reclassified from AOCI into interest income 3 (2) 2 (3) (a) Approximately $7 million of pre-tax gains are expected to be reclassified into earnings in the next twelve months. |
Derivatives Gains/Losses Associated With Mortgage Banking Hedges | The notional and fair values of these contracts are presented in the table below. DERIVATIVES ASSOCIATED WITH MORTGAGE BANKING HEDGES June 30, 2022 (Dollars in millions) Notional Assets Liabilities Mortgage Banking Hedges Option contracts written $ 144 $ 3 $ — Forward contracts written 239 1 1 December 31, 2021 (Dollars in millions) Notional Assets Liabilities Mortgage Banking Hedges Option contracts written $ 241 $ 4 $ — Forward contracts written 404 — — The following table summarizes gains (losses) on FHN's derivatives associated with mortgage banking activities for the three and six months ended June 30, 2022 and 2021: DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH MORTGAGE BANKING HEDGES Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Dollars in millions) Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Mortgage Banking Hedges Option contracts written $ (2) $ 1 $ 1 $ (9) Forward contracts written 9 (11) 27 12 |
Derivative Assets And Collateral Received | The following table provides details of derivative assets and collateral received as presented on the Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021: DERIVATIVE ASSETS & COLLATERAL RECEIVED Gross amounts not offset in the Balance Sheets (Dollars in millions) Gross amounts Gross amounts Net amounts of Derivative Collateral Net amount Derivative assets: June 30, 2022 Interest rate derivative contracts $ 166 $ — $ 166 $ (15) $ (151) $ — Forward contracts 21 — 21 (12) (9) — $ 187 $ — $ 187 $ (27) $ (160) $ — December 31, 2021 Interest rate derivative contracts $ 311 $ — $ 311 $ (32) $ (181) $ 98 Forward contracts 12 — 12 (4) (3) 5 $ 323 $ — $ 323 $ (36) $ (184) $ 103 (a) Included in other assets on the Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, $2 million and $2 million, respectively, of derivative assets have been excluded from these tables because they are generally not subject to master netting or similar agreements. |
Derivative Liabilities and Collateral Pledged | The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021: DERIVATIVE LIABILITIES & COLLATERAL PLEDGED Gross amounts not offset (Dollars in millions) Gross amounts Gross amounts Net amounts of Derivative Collateral Net amount Derivative liabilities: June 30, 2022 Interest rate derivative contracts $ 557 $ — $ 557 $ (15) $ (167) $ 375 Forward contracts 21 — 21 (12) (8) 1 $ 578 $ — $ 578 $ (27) $ (175) $ 376 December 31, 2021 Interest rate derivative contracts $ 93 $ — $ 93 $ (32) $ (38) $ 23 Forward contracts 10 — 10 (4) (1) 5 $ 103 $ — $ 103 $ (36) $ (39) $ 28 (a) Included in other liabilities on the Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, $28 million and $24 million, respectively, of derivative liabilities (primarily Visa-related derivatives) have been excluded from these tables because they are generally not subject to master netting or similar agreements. |
Master Netting and Similar Ag_2
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Offsetting [Abstract] | |
Securities Purchased Under Agreements To Resell And Collateral Pledged By Counterparties | The following table provides details of securities purchased under agreements to resell and collateral pledged by counterparties as of June 30, 2022 and December 31, 2021: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL Gross amounts not offset in the (Dollars in millions) Gross amounts Gross amounts Net amounts of Offsetting Securities collateral Net amount Securities purchased under agreements to resell: June 30, 2022 $ 423 $ — $ 423 $ (6) $ (415) $ 2 December 31, 2021 488 — 488 (10) (476) 2 |
Securities Sold Under Agreements To Repurchase And Collateral Pledged By Company | The following table provides details of securities sold under agreements to repurchase and collateral pledged by FHN as of June 30, 2022 and December 31, 2021: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Gross amounts not offset in the (Dollars in millions) Gross amounts Gross amounts Net amounts of Offsetting Securities/ Net amount Securities sold under agreements to repurchase: June 30, 2022 $ 1,158 $ — $ 1,158 $ (6) $ (1,152) $ — December 31, 2021 1,247 — 1,247 (10) (1,237) — |
Schedule of the Remaining Contractual Maturity by Collateral Type of Securities Sold Under Agreements To Repurchase | The following tables provide details, by collateral type, of the remaining contractual maturity of securities sold under agreements to repurchase as of June 30, 2022 and December 31, 2021: MATURITIES OF SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE June 30, 2022 (Dollars in millions) Overnight and Up to 30 Days Total Securities sold under agreements to repurchase: U.S. treasuries $ 6 $ — $ 6 Government agency issued MBS 1,027 — 1,027 Government agency issued CMO 95 — 95 Other U.S. government agencies 30 — 30 Total securities sold under agreements to repurchase $ 1,158 $ — $ 1,158 December 31, 2021 (Dollars in millions) Overnight and Up to 30 Days Total Securities sold under agreements to repurchase: U.S. treasuries $ 33 $ — $ 33 Government agency issued MBS 1,068 — 1,068 Other U.S. government agencies 31 — 31 Government guaranteed loans (SBA and USDA) 115 — 115 Total securities sold under agreements to repurchase $ 1,247 $ — $ 1,247 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021: BALANCES OF ASSETS & LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS June 30, 2022 (Dollars in millions) Level 1 Level 2 Level 3 Total Trading securities: U.S. treasuries $ — $ 19 $ — $ 19 Government agency issued MBS — 228 — 228 Government agency issued CMO — 223 — 223 Other U.S. government agencies — 50 — 50 States and municipalities — 13 — 13 Corporate and other debt — 833 — 833 Interest-only strips (elected fair value) — — 26 26 Total trading securities — 1,366 26 1,392 Loans held for sale (elected fair value) — 109 34 143 Securities available for sale: Government agency issued MBS — 4,779 — 4,779 Government agency issued CMO — 2,626 — 2,626 Other U.S. government agencies — 974 — 974 States and municipalities — 562 — 562 Total securities available for sale — 8,941 — 8,941 Other assets: Deferred compensation mutual funds 115 — — 115 Equity, mutual funds, and other 22 — — 22 Derivatives, forwards and futures 22 — — 22 Derivatives, interest rate contracts — 166 — 166 Derivatives, other — 1 — 1 Total other assets 159 167 — 326 Total assets $ 159 $ 10,583 $ 60 $ 10,802 Trading liabilities: U.S. treasuries $ — $ 298 $ — $ 298 Government issued agency CMO — 1 — 1 Corporate and other debt — 95 — 95 Total trading liabilities — 394 — 394 Other liabilities: Derivatives, forwards and futures 21 — — 21 Derivatives, interest rate contracts — 556 — 556 Derivatives, other — 1 28 29 Total other liabilities 21 557 28 606 Total liabilities $ 21 $ 951 $ 28 $ 1,000 December 31, 2021 (Dollars in millions) Level 1 Level 2 Level 3 Total Trading securities: U.S. treasuries $ — $ 85 $ — $ 85 Government agency issued MBS — 464 — 464 Government agency issued CMO — 62 — 62 Other U.S. government agencies — 276 — 276 States and municipalities — 34 — 34 Corporate and other debt — 642 — 642 Interest-only strips (elected fair value) — — 38 38 Total trading securities — 1,563 38 1,601 Loans held for sale (elected fair value) — 230 28 258 Securities available for sale: Government agency issued MBS — 5,055 — 5,055 Government agency issued CMO — 2,257 — 2,257 Other U.S. government agencies — 850 — 850 States and municipalities — 545 — 545 Total securities available for sale — 8,707 — 8,707 Other assets: Deferred compensation mutual funds 125 — — 125 Equity, mutual funds, and other 25 — — 25 Derivatives, forwards and futures 12 — — 12 Derivatives, interest rate contracts — 311 — 311 Derivatives, other — 1 — 1 Total other assets 162 312 — 474 Total assets $ 162 $ 10,812 $ 66 $ 11,040 Trading liabilities: U.S. treasuries $ — $ 334 $ — $ 334 Government agency issued MBS — 1 — 1 Corporate and other debt — 91 — 91 Total trading liabilities — 426 — 426 Other liabilities: Derivatives, forwards and futures 11 — — 11 Derivatives, interest rate contracts — 93 — 93 Derivatives, other — 1 23 24 Total other liabilities 11 94 23 128 Total liabilities $ 11 $ 520 $ 23 $ 554 |
Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value | The changes in Level 3 assets and liabilities measured at fair value for the three months ended June 30, 2022 and 2021 on a recurring basis are summarized as follows: CHANGES IN LEVEL 3 ASSETS & LIABILITIES MEASURED AT FAIR VALUE Three Months Ended June 30, 2022 (Dollars in millions) Interest-only strips Loans held Net Balance on April 1, 2022 $ 12 $ 32 $ (18) Total net gains (losses) included in net income (3) — (12) Settlements — — 2 Net transfers into (out of) Level 3 17 (b) 2 — Balance on June 30, 2022 $ 26 $ 34 $ (28) Net unrealized gains (losses) included in net income $ (3) (c) $ — (a) $ (12) (d) Three Months Ended June 30, 2021 (Dollars in millions) Interest-only strips-AFS Loans held for sale Loans Net Balance on April 1, 2021 $ 22 $ 12 $ 17 $ (21) Total net gains (losses) included in net income (1) 1 — — Purchases — 5 — — Sales (6) (10) — — Settlements — (1) — 3 Net transfers into (out of) Level 3 15 (b) 18 (e) (17) (e) — Balance on June 30, 2021 $ 30 $ 25 $ — $ (18) Net unrealized gains (losses) included in net income $ (1) (c) $ 1 (a) $ — $ — (d) (a) Primarily included in mortgage banking and title income on the Consolidated Statements of Income. (b) Transfers into interest-only strips level 3 measured on a recurring basis reflect movements from loans held for sale (Level 2 nonrecurring). (c) Primarily included in fixed income on the Consolidated Statements of Income. (d) Included in other expense. (e) The loans held for investment at fair value option portfolio was transferred to the loans held for sale portfolio on April 1, 2021. The changes in Level 3 assets and liabilities measured at fair value for the six months ended June 30, 2022 and 2021, on a recurring basis are summarized as follows: CHANGES IN LEVEL 3 ASSETS & LIABILITIES MEASURED AT FAIR VALUE Six Months Ended June 30, 2022 (Dollars in millions) Interest-only strips Loans held Net derivative Balance on January 1, 2022 $ 38 $ 28 $ (23) Total net gains (losses) included in net income (3) — (12) Purchases — 1 — Sales (37) — — Settlements — (1) 7 Net transfers into (out of) Level 3 28 (b) 6 — Balance on June 30, 2022 $ 26 $ 34 $ (28) Net unrealized gains (losses) included in net income $ (4) (c) $ — (a) $ (12) (d) Six Months Ended June 30, 2021 (Dollars in millions) Interest-only strips-AFS Loans held for sale Loans held for investment Net derivative Balance on January 1, 2021 $ 32 $ 12 $ 16 $ (14) Total net gains (losses) included in net income 4 2 — (9) Purchases — 5 — — Sales (33) (10) — — Settlements — (2) (2) 5 Net transfers into (out of) Level 3 27 (b) 18 (e) (14) (e) — Balance on June 30, 2021 $ 30 $ 25 $ — $ (18) Net unrealized gains (losses) included in net income $ 1 (c) $ 2 (a) $ — $ (9) (d) (a) Primarily included in mortgage banking and title income on the Consolidated Statements of Income. (b) Transfers into interest-only strips level 3 measured on a recurring basis reflect movements from loans held for sale (Level 2 nonrecurring). (c) Primarily included in fixed income on the Consolidated Statements of Income. (d) Included in other expense. (e) The loans held for investment at fair value option portfolio was transferred to the loans held for sale portfolio on April 1, 2021. |
Nonrecurring Fair Value Measurements | For assets measured at fair value on a nonrecurring basis which were still held on the Consolidated Balance Sheets at June 30, 2022, and December 31, 2021, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value. LEVEL OF VALUATION ASSUMPTIONS FOR ASSETS MEASURED AT FAIR VALUE ON A NON-RECURRING BASIS Carrying value at June 30, 2022 (Dollars in millions) Level 1 Level 2 Level 3 Total Loans held for sale—SBAs and USDA $ — $ 690 $ — $ 690 Loans held for sale—first mortgages — — 1 1 Loans and leases (a) — — 133 133 OREO (b) — — 2 2 Other assets (c) — — 40 40 Carrying value at December 31, 2021 (Dollars in millions) Level 1 Level 2 Level 3 Total Loans held for sale—SBAs and USDA $ — $ 852 $ 1 $ 853 Loans held for sale—first mortgages — — 1 1 Loans and leases (a) — — 84 84 OREO (b) — — 3 3 Other assets (c) — — 30 30 (a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses. (b) Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages. (c) Represents tax credit investments accounted for under the equity method. |
Gains/(losses) on Nonrecurring Fair Value Measurements | For assets measured on a nonrecurring basis which were still held on the Consolidated Balance Sheets at period end, the following table provides information about the fair value adjustments recorded during the three and six months ended June 30, 2022 and 2021: FAIR VALUE ADJUSTMENTS ON ASSETS MEASURED ON A NONRECURRING BASIS Net gains (losses) Net gains (losses) (Dollars in millions) 2022 2021 2022 2021 Loans held for sale—SBAs and USDA $ (3) $ (2) $ (4) $ (2) Loans and leases (a) — (1) (1) (3) OREO (b) — (1) — (1) Other assets (c) (1) — (2) — $ (4) $ (4) $ (7) $ (6) (a) Write-downs on these loans are recognized as part of provision for credit losses. (b) Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages. (c) Represents tax credit investments accounted for under the equity method. |
Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements | The following tables provide information regarding the unobservable inputs utilized in determining the fair value of Level 3 recurring and non-recurring measurements as of June 30, 2022 and December 31, 2021: UNOBSERVABLE INPUTS USED IN LEVEL 3 FAIR VALUE MEASUREMENTS (Dollars in millions) Values Utilized Level 3 Class Fair Value at June 30, 2022 Valuation Techniques Unobservable Input Range Weighted Average (d) Trading securities - SBA interest-only strips $ 26 Discounted cash flow Constant prepayment rate 12% 12% Bond equivalent yield 16% - 18% 16% Loans held for sale - residential real estate $ 35 Discounted cash flow Prepayment speeds - First mortgage 3% - 10% 4% Foreclosure losses 63% - 77% 65% Loss severity trends - First mortgage 0% - 12% of UPB 7% Derivative liabilities, other $ 28 Discounted cash flow Visa covered litigation resolution amount $5.4 billion - $6.2 billion $5.9 billion Probability of resolution scenarios 10% - 30% 24% Time until resolution 6 - 36 months 24 months Loans and leases (a) $ 133 Appraisals from comparable properties Marketability adjustments for specific properties 0% - 10% of appraisal NM Other collateral valuations Borrowing base certificates adjustment 20% - 50% of gross value NM Financial Statements/Auction values adjustment 0% - 25% of reported value NM OREO (b) $ 2 Appraisals from comparable properties Adjustment for value changes since appraisal 0% - 10% of appraisal NM Other assets (c) $ 40 Discounted cash flow Adjustments to current sales yields for specific properties 0% - 15% adjustment to yield NM Appraisals from comparable properties Marketability adjustments for specific properties 0% - 25% of appraisal NM NM - Not meaningful (a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses. (b) Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages. (c) Represents tax credit investments accounted for under the equity method. (d) Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value. (Dollars in millions) Values Utilized Level 3 Class Fair Value at December 31, 2021 Valuation Techniques Unobservable Input Range Weighted Average (d) Trading securities - SBA interest-only strips $ 38 Discounted cash flow Constant prepayment rate 11% - 12% 11% Bond equivalent yield 11% - 14% 11% Loans held for sale - residential real estate $ 29 Discounted cash flow Prepayment speeds - First mortgage 4% - 12% 5% Foreclosure losses 54% - 66% 65% Loss severity trends - First mortgage 1% - 14% of UPB 8% Loans held for sale - unguaranteed interest in SBA loans $ 1 Discounted cash flow Constant prepayment rate 8% - 12% 10% Bond equivalent yield 11% 11% Derivative liabilities, other $ 23 Discounted cash flow Visa covered litigation resolution amount $5.8 billion - $6.2 billion $6.0 billion Probability of resolution scenarios 15% - 35% 24% Time until resolution 12 - 36 months 25 months Loans and leases (a) $ 84 Appraisals from comparable properties Marketability adjustments for specific properties 0% - 10% of appraisal NM Other collateral valuations Borrowing base certificates adjustment 20% - 50% of gross value NM Financial Statements/Auction values adjustment 0% - 25% of reported value NM OREO (b) $ 3 Appraisals from comparable properties Adjustment for value changes since appraisal 0% - 10% of appraisal NM Other assets (c) $ 30 Discounted cash flow Adjustments to current sales yields for specific properties 0% - 15% adjustment to yield NM Appraisals from comparable properties Marketability adjustments for specific properties 0% - 25% of appraisal NM NM - Not meaningful (a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses. (b) Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages. (c) Represents tax credit investments accounted for under the equity method. (d) Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value. |
Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount | The following tables reflect the differences between the fair value carrying amount of residential real estate loans held for sale and held for investment measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity. DIFFERENCES BETWEEN FAIR VALUE CARRYING AMOUNTS AND CONTRACTUAL AMOUNTS OF RESIDENTIAL REAL ESTATE LOANS REPORTED AT FAIR VALUE June 30, 2022 (Dollars in millions) Fair value Aggregate Fair value carrying amount Residential real estate loans held for sale reported at fair value: Total loans $ 143 $ 148 $ (5) Nonaccrual loans 4 7 (3) December 31, 2021 (Dollars in millions) Fair value Aggregate Fair value carrying amount Residential real estate loans held for sale reported at fair value: Total loans $ 258 $ 264 $ (6) Nonaccrual loans 4 7 (3) |
Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings | Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table: CHANGES IN FAIR VALUE RECOGNIZED IN NET INCOME Three Months Ended Six Months Ended (Dollars in millions) 2022 2021 2022 2021 Changes in fair value included in net income: Mortgage banking and title noninterest income Loans held for sale $ 2 $ 4 $ (6) $ (5) |
Summary Of Book Value And Estimated Fair Value Of Financial Instruments | The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021: BOOK VALUE AND ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS June 30, 2022 Book Fair Value (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Loans and leases, net of allowance for loan and lease losses Commercial: Commercial, financial and industrial $ 31,002 $ — $ — $ 31,296 $ 31,296 Commercial real estate 12,801 — — 13,191 13,191 Consumer: Consumer real estate 11,258 — — 11,252 11,252 Credit card and other 844 — — 885 885 Total loans and leases, net of allowance for loan and lease losses 55,905 — — 56,624 56,624 Short-term financial assets: Interest-bearing deposits with banks 9,475 9,475 — — 9,475 Federal funds sold 289 — 289 — 289 Securities purchased under agreements to resell 423 — 423 — 423 Total short-term financial assets 10,187 9,475 712 — 10,187 Trading securities (a) 1,392 — 1,366 26 1,392 Loans held for sale: Mortgage loans (elected fair value) (a) 143 — 109 34 143 USDA & SBA loans - LOCOM 690 — 690 — 690 Other loans - LOCOM 3 — 3 — 3 Mortgage loans - LOCOM 34 — — 34 34 Total loans held for sale 870 — 802 68 870 Securities available for sale (a) 8,941 — 8,941 — 8,941 Securities held to maturity 687 — 601 — 601 Derivative assets (a) 189 22 167 — 189 Other assets: Tax credit investments 504 — — 498 498 Deferred compensation mutual funds 115 115 — — 115 Equity, mutual funds, and other (b) 255 22 — 233 255 Total other assets 874 137 — 731 868 Total assets $ 79,045 $ 9,634 $ 12,589 $ 57,449 $ 79,672 Liabilities: Defined maturity deposits $ 2,888 $ — $ 2,893 $ — $ 2,893 Trading liabilities (a) 394 — 394 — 394 Short-term financial liabilities: Federal funds purchased 566 — 566 — 566 Securities sold under agreements to repurchase 1,158 — 1,158 — 1,158 Other short-term borrowings 229 — 229 — 229 Total short-term financial liabilities 1,953 — 1,953 — 1,953 Term borrowings: Real estate investment trust-preferred 46 — — 47 47 Term borrowings—new market tax credit investment 66 — — 61 61 Secured borrowings 7 — — 7 7 Junior subordinated debentures 148 — — 150 150 Other long term borrowings 1,332 — 1,331 — 1,331 Total term borrowings 1,599 — 1,331 265 1,596 Derivative liabilities (a) 606 21 557 28 606 Total liabilities $ 7,440 $ 21 $ 7,128 $ 293 $ 7,442 (a) Classes are detailed in the recurring and nonrecurring measurement tables. (b) Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $29 million and FRB stock of $204 million. December 31, 2021 Book Fair Value (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Loans and leases and allowance for loan and lease losses Commercial: Commercial, financial and industrial $ 30,734 $ — $ — $ 31,020 $ 31,020 Commercial real estate 11,955 — — 11,986 11,986 Consumer: Consumer real estate 10,609 — — 11,111 11,111 Credit card and other 891 — — 906 906 Total loans and leases, net of allowance for loan and lease losses 54,189 — — 55,023 55,023 Short-term financial assets: Interest-bearing deposits with banks 14,907 14,907 — — 14,907 Federal funds sold 153 — 153 — 153 Securities purchased under agreements to resell 488 — 488 — 488 Total short-term financial assets 15,548 14,907 641 — 15,548 Trading securities (a) 1,601 — 1,563 38 1,601 Loans held for sale: Mortgage loans (elected fair value) (a) 258 — 230 28 258 USDA & SBA loans - LOCOM 853 — 855 1 856 Other loans - LOCOM 24 — 24 — 24 Mortgage loans - LOCOM 37 — — 37 37 Total loans held for sale 1,172 — 1,109 66 1,175 Securities available for sale (a) 8,707 — 8,707 — 8,707 Securities held to maturity 712 — 705 — 705 Derivative assets (a) 324 12 312 — 324 Other assets: Tax credit investments 456 — — 450 450 Deferred compensation mutual funds 125 125 — — 125 Equity, mutual funds, and other (b) 257 25 — 232 257 Total other assets 838 150 — 682 832 Total assets $ 83,091 $ 15,069 $ 13,037 $ 55,809 $ 83,915 Liabilities: Defined maturity deposits $ 3,500 $ — $ 3,524 $ — $ 3,524 Trading liabilities (a) 426 — 426 — 426 Short-term financial liabilities: Federal funds purchased 775 — 775 — 775 Securities sold under agreements to repurchase 1,247 — 1,247 — 1,247 Other short-term borrowings 102 — 102 — 102 Total short-term financial liabilities 2,124 — 2,124 — 2,124 Term borrowings: Real estate investment trust-preferred 46 — — 47 47 Term borrowings—new market tax credit investment 59 — — 58 58 Secured borrowings 6 — — 6 6 Junior subordinated debentures 148 — — 150 150 Other long term borrowings 1,331 — 1,452 — 1,452 Total term borrowings 1,590 — 1,452 261 1,713 Derivative liabilities (a) 128 11 94 23 128 Total liabilities $ 7,768 $ 11 $ 7,620 $ 284 $ 7,915 (a) Classes are detailed in the recurring and nonrecurring measurement tables. (b) Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $29 million and FRB stock of $203 million. The following table presents the contractual amount and fair value of unfunded loan commitments and standby and other commitments as of June 30, 2022 and December 31, 2021: UNFUNDED COMMITMENTS Contractual Amount Fair Value (Dollars in millions) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Unfunded Commitments: Loan commitments $ 26,049 $ 24,229 $ 1 $ 1 Standby and other commitments 723 810 6 6 |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Feb. 27, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.625 | $ 0.625 | $ 0.625 | |
TD Merger Agreement | ||||
Business Acquisition [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.625 | |||
Cash to be received per common share upon closing (in dollars per share) | 25 | |||
Additional cash to be received per common share upon closing, annual basis (in dollars per share) | 0.65 | |||
Additional cash to be received per common share upon closing, monthly basis (in dollars per share) | $ 0.054 | |||
Merger and integration expense | $ 25 | $ 34 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost, Unrealized Gains/(Losses) and Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 9,830 | |
Securities available for sale at fair value | 8,941 | $ 8,707 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 687 | 712 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (86) | (7) |
Fair Value | 601 | 705 |
Government agency issued MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,268 | 5,062 |
Gross Unrealized Gains | 2 | 42 |
Gross Unrealized Losses | (491) | (49) |
Securities available for sale at fair value | 4,779 | 5,055 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 486 | 509 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (62) | (5) |
Fair Value | 424 | 504 |
Government agency issued CMO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,867 | 2,296 |
Gross Unrealized Gains | 0 | 8 |
Gross Unrealized Losses | (241) | (47) |
Securities available for sale at fair value | 2,626 | 2,257 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 201 | 203 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (24) | (2) |
Fair Value | 177 | 201 |
Other U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,071 | 861 |
Gross Unrealized Gains | 1 | 4 |
Gross Unrealized Losses | (98) | (15) |
Securities available for sale at fair value | 974 | 850 |
States and municipalities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 623 | 535 |
Gross Unrealized Gains | 0 | 11 |
Gross Unrealized Losses | (61) | (1) |
Securities available for sale at fair value | 562 | 545 |
Securities available-for-sale, excluding interest only strip | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,829 | 8,754 |
Gross Unrealized Gains | 3 | 65 |
Gross Unrealized Losses | (891) | (112) |
Securities available for sale at fair value | 8,941 | 8,707 |
Securities available-for-sale, excluding interest only strip | Collateral Pledged | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities available for sale at fair value | $ 6,500 | $ 6,500 |
Investment Securities - Sched_2
Investment Securities - Schedule Of Amortized Cost And Fair Value By Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Within 1 year | $ 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Subtotal | 0 | |
Government agency issued MBS and CMO | 687 | |
Total | 687 | |
Fair Value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Subtotal | 0 | |
Government agency issued MBS and CMO | 601 | |
Fair Value | 601 | $ 705 |
Amortized Cost | ||
Within 1 year | 50 | |
After 1 year through 5 years | 122 | |
After 5 years through 10 years | 347 | |
After 10 years | 1,176 | |
Subtotal | 1,695 | |
Government agency issued MBS and CMO | 8,135 | |
Securities available for sale, amortized cost | 9,830 | |
Fair Value | ||
Within 1 year | 50 | |
After 1 year through 5 years | 117 | |
After 5 years through 10 years | 319 | |
After 10 years | 1,050 | |
Subtotal | 1,536 | |
Government agency issued MBS and CMO | 7,405 | |
Securities available-for-sale | $ 8,941 | $ 8,707 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Marketable Securities [Abstract] | |||||
Gains (losses) on available-for-sale securities | $ 0 | $ 0 | |||
Proceeds from sales of securities available for sale | 0 | 6,000,000 | $ 0 | $ 33,000,000 | |
Available-for-sale, accrued interest, after allowance for credit loss | 27,000,000 | 27,000,000 | $ 23,000,000 | ||
Held-to-maturity, accrued interest, after allowance for credit loss | 1,000,000 | 1,000,000 | 1,000,000 | ||
Allowance for credit loss | 0 | 0 | 0 | ||
Carrying amount of equity investments without a readily determinable fair value | 72,000,000 | 72,000,000 | $ 70,000,000 | ||
Unrealized (losses) gains for equity investments with readily determinable fair values | $ 9,000,000 | $ 3,000,000 | $ 13,000,000 | $ 6,000,000 |
Investment Securities - Sched_3
Investment Securities - Schedule Of Investments Within The Available For Sale Portfolio That Had Unrealized Losses (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Less than 12 months | $ 6,756 | $ 4,936 |
12 months or longer | 1,816 | 522 |
Total fair value | 8,572 | 5,458 |
Unrealized Losses | ||
Less than 12 months | (601) | (90) |
12 months or longer | (290) | (22) |
Total unrealized losses | (891) | (112) |
Government agency issued MBS | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 3,887 | 2,973 |
12 months or longer | 787 | 184 |
Total fair value | 4,674 | 3,157 |
Unrealized Losses | ||
Less than 12 months | (362) | (41) |
12 months or longer | (129) | (8) |
Total unrealized losses | (491) | (49) |
Government agency issued CMO | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 1,695 | 1,436 |
12 months or longer | 819 | 248 |
Total fair value | 2,514 | 1,684 |
Unrealized Losses | ||
Less than 12 months | (115) | (37) |
12 months or longer | (126) | (10) |
Total unrealized losses | (241) | (47) |
Other U.S. government agencies | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 664 | 459 |
12 months or longer | 203 | 90 |
Total fair value | 867 | 549 |
Unrealized Losses | ||
Less than 12 months | (65) | (11) |
12 months or longer | (33) | (4) |
Total unrealized losses | (98) | (15) |
States and municipalities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 510 | 68 |
12 months or longer | 7 | 0 |
Total fair value | 517 | 68 |
Unrealized Losses | ||
Less than 12 months | (59) | (1) |
12 months or longer | (2) | 0 |
Total unrealized losses | $ (61) | $ (1) |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrued interest | $ 152 | $ 152 | $ 134 | ||
Net loans and leases | 55,905 | 55,905 | 54,189 | ||
Loans and leases | 56,529 | 56,529 | 54,859 | ||
Troubled debt restructurings loans | 199 | 199 | 206 | ||
C&I | Collateral Pledged | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 98 | 98 | 120 | ||
Allowance for credit loss, writeoff, collateral | 1 | 4 | |||
Loans Held For Sale, Residential Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Troubled debt restructurings loans | 32 | 32 | 35 | ||
Commercial | Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 31,276 | 31,276 | 31,068 | ||
Commercial | Commercial and industrial | Loans to mortgage companies | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | $ 3,441 | $ 3,441 | 4,518 | ||
Percentage contributed | 23% | 23% | |||
Commercial | Commercial and industrial | Finance And Insurance Companies | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | $ 3,700 | $ 3,700 | |||
Commercial | Commercial and industrial | C&I | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 27,835 | 27,835 | 26,550 | ||
Commercial | Commercial and industrial | C&I | Collateral Pledged | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 91 | 91 | |||
Commercial | Commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 12,942 | 12,942 | 12,109 | ||
Commercial | Commercial real estate | CRE | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 12,942 | 12,942 | 12,109 | ||
Commercial | Commercial real estate | CRE | Collateral Pledged | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 7 | 7 | |||
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 11,441 | 11,441 | 10,772 | ||
Consumer | Consumer Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 11,441 | 11,441 | 10,772 | ||
Consumer | Consumer Real Estate | Collateral Pledged | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit loss, writeoff, collateral | 2 | $ 0 | 2 | $ 0 | |
Consumer | Consumer Real Estate | HELOC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 1,917 | 1,917 | 1,964 | ||
Consumer | Consumer Real Estate | HELOC | Collateral Pledged | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 8 | 8 | 7 | ||
Consumer | Consumer Real Estate | Real estate installment loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 9,524 | 9,524 | 8,808 | ||
Consumer | Consumer Real Estate | Real estate installment loans | Collateral Pledged | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases | 34 | 34 | 20 | ||
Asset Pledged as Collateral | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net loans and leases | $ 37,100 | $ 37,100 | $ 36,600 |
Loans and Leases - Schedule Of
Loans and Leases - Schedule Of Loans By Portfolio Segment (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | $ 56,529 | $ 54,859 | ||||
Allowance for loan and lease losses | (624) | $ (622) | (670) | $ (815) | $ (914) | $ (963) |
Net loans and leases | 55,905 | 54,189 | ||||
Equipment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Property, plant, and equipment and finance lease right-of-use asset | 897 | 792 | ||||
Commercial | Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 27,835 | 26,550 | ||||
Commercial | Loans to mortgage companies | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 3,441 | 4,518 | ||||
Commercial | Commercial, financial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 31,276 | 31,068 | ||||
Allowance for loan and lease losses | (274) | (287) | (334) | (385) | (442) | (453) |
Commercial | Commercial, financial and industrial | Paycheck Protection Plan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 375 | 1,000 | 3,800 | |||
Commercial | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 12,942 | 12,109 | ||||
Allowance for loan and lease losses | (141) | (151) | (154) | (210) | (232) | (242) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 11,441 | 10,772 | ||||
Consumer | HELOC | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 1,917 | 1,964 | ||||
Consumer | Real estate installment loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 9,524 | 8,808 | ||||
Consumer | Credit Card and Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases | 870 | 910 | ||||
Allowance for loan and lease losses | $ (26) | $ (20) | $ (19) | $ (17) | $ (18) | $ (26) |
Loans and Leases - Balances Of
Loans and Leases - Balances Of Commercial Loan Portfolio Classes, Disaggregated By PD Grade (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 56,529 | $ 54,859 |
Commercial and industrial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 2,949 | 7,421 |
Financing receivable, originated year two | 5,260 | 3,676 |
Financing receivable, originated year three | 2,389 | 3,556 |
Financing receivable, originated year four | 2,652 | 1,606 |
Financing receivable, originated year five | 1,349 | 1,253 |
Financing receivable, originated prior to year five | 3,786 | 2,358 |
LMC | 3,441 | 4,518 |
Revolving Loans | 8,843 | 6,615 |
Revolving Loans Converted to Term Loans | 607 | 65 |
Loans and leases | 31,276 | 31,068 |
Revolving loans converted to term loan during period | 0 | 0 |
Commercial and industrial | PD Grade 1 -12 | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 2,945 | 7,372 |
Financing receivable, originated year two | 5,229 | 3,576 |
Financing receivable, originated year three | 2,354 | 3,439 |
Financing receivable, originated year four | 2,613 | 1,455 |
Financing receivable, originated year five | 1,268 | 1,193 |
Financing receivable, originated prior to year five | 3,611 | 2,267 |
LMC | 3,441 | 4,518 |
Revolving Loans | 8,670 | 6,386 |
Revolving Loans Converted to Term Loans | 498 | 13 |
Loans and leases | 30,629 | 30,219 |
Commercial and industrial | PD Grade 13 | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 0 | 25 |
Financing receivable, originated year two | 18 | 39 |
Financing receivable, originated year three | 8 | 50 |
Financing receivable, originated year four | 35 | 48 |
Financing receivable, originated year five | 23 | 36 |
Financing receivable, originated prior to year five | 72 | 43 |
LMC | 0 | 0 |
Revolving Loans | 80 | 100 |
Revolving Loans Converted to Term Loans | 24 | 4 |
Loans and leases | 260 | 345 |
Commercial and industrial | PD Grade 14 ,15 and 16 | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 4 | 24 |
Financing receivable, originated year two | 13 | 61 |
Financing receivable, originated year three | 27 | 67 |
Financing receivable, originated year four | 4 | 103 |
Financing receivable, originated year five | 58 | 24 |
Financing receivable, originated prior to year five | 103 | 48 |
LMC | 0 | 0 |
Revolving Loans | 93 | 129 |
Revolving Loans Converted to Term Loans | 85 | 48 |
Loans and leases | 387 | 504 |
Commercial real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,942 | 12,109 |
Commercial real estate | Commercial | CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 1,531 | 3,492 |
Financing receivable, originated year two | 3,065 | 2,091 |
Financing receivable, originated year three | 1,651 | 2,590 |
Financing receivable, originated year four | 2,300 | 1,057 |
Financing receivable, originated year five | 1,072 | 744 |
Financing receivable, originated prior to year five | 3,054 | 1,919 |
Revolving Loans | 254 | 216 |
Revolving Loans Converted to Term Loans | 15 | 0 |
Loans and leases | 12,942 | 12,109 |
Commercial real estate | PD Grade 1 -12 | Commercial | CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 1,531 | 3,441 |
Financing receivable, originated year two | 3,065 | 2,065 |
Financing receivable, originated year three | 1,651 | 2,514 |
Financing receivable, originated year four | 2,300 | 929 |
Financing receivable, originated year five | 1,071 | 691 |
Financing receivable, originated prior to year five | 3,035 | 1,822 |
Revolving Loans | 243 | 204 |
Revolving Loans Converted to Term Loans | 15 | 0 |
Loans and leases | 12,911 | 11,666 |
Commercial real estate | PD Grade 13 | Commercial | CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 0 | 4 |
Financing receivable, originated year two | 0 | 26 |
Financing receivable, originated year three | 0 | 52 |
Financing receivable, originated year four | 0 | 125 |
Financing receivable, originated year five | 0 | 20 |
Financing receivable, originated prior to year five | 19 | 65 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Loans and leases | 19 | 292 |
Commercial real estate | PD Grade 14 ,15 and 16 | Commercial | CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 0 | 47 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 24 |
Financing receivable, originated year four | 0 | 3 |
Financing receivable, originated year five | 1 | 33 |
Financing receivable, originated prior to year five | 0 | 32 |
Revolving Loans | 11 | 12 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Loans and leases | $ 12 | $ 151 |
Loans and Leases - Loans by FIC
Loans and Leases - Loans by FICO Score (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 56,529 | $ 54,859 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 11,441 | 10,772 |
Consumer | Consumer real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 1,764 | 2,205 |
Financing receivable, originated year two | 2,602 | 1,690 |
Financing receivable, originated year three | 1,249 | 1,232 |
Financing receivable, originated year four | 855 | 763 |
Financing receivable, originated year five | 495 | 585 |
Financing receivable, originated prior to year five | 2,559 | 2,333 |
Revolving Loans | 1,742 | 1,701 |
Revolving Loans Converted to Term Loans | 175 | 263 |
Loans and leases | 11,441 | 10,772 |
Consumer | Consumer real estate | FICO score 740 or greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 1,290 | 1,594 |
Financing receivable, originated year two | 1,928 | 1,156 |
Financing receivable, originated year three | 878 | 825 |
Financing receivable, originated year four | 568 | 473 |
Financing receivable, originated year five | 305 | 394 |
Financing receivable, originated prior to year five | 1,404 | 1,335 |
Revolving Loans | 1,100 | 1,086 |
Revolving Loans Converted to Term Loans | 75 | 115 |
Loans and leases | 7,548 | 6,978 |
Consumer | Consumer real estate | FICO score 720-739 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 177 | 236 |
Financing receivable, originated year two | 267 | 171 |
Financing receivable, originated year three | 120 | 109 |
Financing receivable, originated year four | 105 | 61 |
Financing receivable, originated year five | 38 | 44 |
Financing receivable, originated prior to year five | 250 | 209 |
Revolving Loans | 172 | 162 |
Revolving Loans Converted to Term Loans | 21 | 21 |
Loans and leases | 1,150 | 1,013 |
Consumer | Consumer real estate | FICO score 700-719 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 157 | 143 |
Financing receivable, originated year two | 220 | 112 |
Financing receivable, originated year three | 101 | 81 |
Financing receivable, originated year four | 62 | 68 |
Financing receivable, originated year five | 40 | 45 |
Financing receivable, originated prior to year five | 226 | 153 |
Revolving Loans | 149 | 141 |
Revolving Loans Converted to Term Loans | 26 | 23 |
Loans and leases | 981 | 766 |
Consumer | Consumer real estate | FICO score 660-699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 117 | 164 |
Financing receivable, originated year two | 141 | 131 |
Financing receivable, originated year three | 93 | 120 |
Financing receivable, originated year four | 62 | 106 |
Financing receivable, originated year five | 66 | 44 |
Financing receivable, originated prior to year five | 298 | 246 |
Revolving Loans | 204 | 204 |
Revolving Loans Converted to Term Loans | 26 | 44 |
Loans and leases | 1,007 | 1,059 |
Consumer | Consumer real estate | FICO score 620-659 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 10 | 42 |
Financing receivable, originated year two | 27 | 36 |
Financing receivable, originated year three | 27 | 55 |
Financing receivable, originated year four | 45 | 23 |
Financing receivable, originated year five | 21 | 13 |
Financing receivable, originated prior to year five | 111 | 118 |
Revolving Loans | 56 | 66 |
Revolving Loans Converted to Term Loans | 10 | 27 |
Loans and leases | 307 | 380 |
Consumer | Consumer real estate | FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 13 | 26 |
Financing receivable, originated year two | 19 | 84 |
Financing receivable, originated year three | 30 | 42 |
Financing receivable, originated year four | 13 | 32 |
Financing receivable, originated year five | 25 | 45 |
Financing receivable, originated prior to year five | 270 | 272 |
Revolving Loans | 61 | 42 |
Revolving Loans Converted to Term Loans | 17 | 33 |
Loans and leases | 448 | 576 |
Consumer | Credit Card and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 117 | 131 |
Financing receivable, originated year two | 38 | 57 |
Financing receivable, originated year three | 30 | 47 |
Financing receivable, originated year four | 25 | 44 |
Financing receivable, originated year five | 16 | 31 |
Financing receivable, originated prior to year five | 27 | 155 |
Revolving Loans | 606 | 426 |
Revolving Loans Converted to Term Loans | 11 | 19 |
Loans and leases | 870 | 910 |
Revolving loans converted to term loan during period | 1 | 9 |
Consumer | Credit Card and Other | FICO score 740 or greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 26 | 56 |
Financing receivable, originated year two | 20 | 35 |
Financing receivable, originated year three | 17 | 29 |
Financing receivable, originated year four | 11 | 23 |
Financing receivable, originated year five | 4 | 13 |
Financing receivable, originated prior to year five | 16 | 56 |
Revolving Loans | 295 | 200 |
Revolving Loans Converted to Term Loans | 7 | 11 |
Loans and leases | 396 | 423 |
Consumer | Credit Card and Other | FICO score 720-739 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 5 | 14 |
Financing receivable, originated year two | 3 | 5 |
Financing receivable, originated year three | 2 | 4 |
Financing receivable, originated year four | 2 | 3 |
Financing receivable, originated year five | 1 | 4 |
Financing receivable, originated prior to year five | 1 | 17 |
Revolving Loans | 39 | 46 |
Revolving Loans Converted to Term Loans | 1 | 3 |
Loans and leases | 54 | 96 |
Consumer | Credit Card and Other | FICO score 700-719 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 4 | 8 |
Financing receivable, originated year two | 4 | 5 |
Financing receivable, originated year three | 2 | 4 |
Financing receivable, originated year four | 1 | 4 |
Financing receivable, originated year five | 1 | 3 |
Financing receivable, originated prior to year five | 1 | 17 |
Revolving Loans | 37 | 42 |
Revolving Loans Converted to Term Loans | 1 | 1 |
Loans and leases | 51 | 84 |
Consumer | Credit Card and Other | FICO score 660-699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 8 | 25 |
Financing receivable, originated year two | 2 | 6 |
Financing receivable, originated year three | 2 | 5 |
Financing receivable, originated year four | 1 | 6 |
Financing receivable, originated year five | 2 | 4 |
Financing receivable, originated prior to year five | 2 | 31 |
Revolving Loans | 39 | 98 |
Revolving Loans Converted to Term Loans | 1 | 2 |
Loans and leases | 57 | 177 |
Consumer | Credit Card and Other | FICO score 620-659 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 3 | 4 |
Financing receivable, originated year two | 2 | 3 |
Financing receivable, originated year three | 1 | 2 |
Financing receivable, originated year four | 0 | 4 |
Financing receivable, originated year five | 1 | 3 |
Financing receivable, originated prior to year five | 1 | 18 |
Revolving Loans | 19 | 22 |
Revolving Loans Converted to Term Loans | 0 | 1 |
Loans and leases | 27 | 57 |
Consumer | Credit Card and Other | FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 71 | 24 |
Financing receivable, originated year two | 7 | 3 |
Financing receivable, originated year three | 6 | 3 |
Financing receivable, originated year four | 10 | 4 |
Financing receivable, originated year five | 7 | 4 |
Financing receivable, originated prior to year five | 6 | 16 |
Revolving Loans | 177 | 18 |
Revolving Loans Converted to Term Loans | 1 | 1 |
Loans and leases | 285 | 73 |
Consumer | HELOC | Consumer real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 1,917 | 1,964 |
Revolving loans converted to term loan during period | $ 3 | $ 43 |
Loans and Leases - Accruing And
Loans and Leases - Accruing And Non-Accruing Loans By Class (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | $ 56,105 | $ 54,436 |
Total Accruing | 56,228 | 54,584 |
Current, non-accruing | 181 | 182 |
Total Non- Accruing | 301 | 275 |
Loans and leases | 56,529 | 54,859 |
30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 106 | 108 |
Past due, non-accruing | 11 | 7 |
90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 17 | 40 |
Past due, non-accruing | 109 | 86 |
Commercial | Commercial, financial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 31,119 | 30,885 |
Total Accruing | 31,147 | 30,943 |
Current, non-accruing | 80 | 97 |
Total Non- Accruing | 129 | 125 |
Loans and leases | 31,276 | 31,068 |
Commercial | Commercial, financial and industrial | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 28 | 53 |
Past due, non-accruing | 0 | 1 |
Commercial | Commercial, financial and industrial | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 0 | 5 |
Past due, non-accruing | 49 | 27 |
Commercial | Commercial, financial and industrial | C&I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 27,678 | 26,367 |
Total Accruing | 27,706 | 26,425 |
Current, non-accruing | 80 | 97 |
Total Non- Accruing | 129 | 125 |
Loans and leases | 27,835 | 26,550 |
Nonaccrual, no allowance | 123 | 99 |
Commercial | Commercial, financial and industrial | C&I | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 28 | 53 |
Past due, non-accruing | 0 | 1 |
Commercial | Commercial, financial and industrial | C&I | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 0 | 5 |
Past due, non-accruing | 49 | 27 |
Commercial | Commercial, financial and industrial | Loans to mortgage companies | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 3,441 | 4,518 |
Total Accruing | 3,441 | 4,518 |
Current, non-accruing | 0 | 0 |
Total Non- Accruing | 0 | 0 |
Loans and leases | 3,441 | 4,518 |
Commercial | Commercial, financial and industrial | Loans to mortgage companies | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 0 | 0 |
Past due, non-accruing | 0 | 0 |
Commercial | Commercial, financial and industrial | Loans to mortgage companies | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 0 | 0 |
Past due, non-accruing | 0 | 0 |
Commercial | Commercial, financial and industrial | CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual, no allowance | 6 | 5 |
Commercial | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,942 | 12,109 |
Commercial | Commercial real estate | CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 12,087 | |
Total Accruing | 12,100 | |
Current, non-accruing | 6 | |
Total Non- Accruing | 9 | |
Loans and leases | 12,942 | 12,109 |
Commercial | Commercial real estate | CRE | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 13 | |
Past due, non-accruing | 1 | |
Commercial | Commercial real estate | CRE | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 0 | |
Past due, non-accruing | 2 | |
Commercial real estate | Commercial real estate | CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 12,903 | |
Total Accruing | 12,931 | |
Current, non-accruing | 9 | |
Total Non- Accruing | 11 | |
Loans and leases | 12,942 | |
Commercial real estate | Commercial real estate | CRE | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 28 | |
Past due, non-accruing | 0 | |
Commercial real estate | Commercial real estate | CRE | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 0 | |
Past due, non-accruing | 2 | |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 11,441 | 10,772 |
Consumer | Consumer Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 11,224 | 10,564 |
Total Accruing | 11,282 | 10,634 |
Current, non-accruing | 90 | 78 |
Total Non- Accruing | 159 | 138 |
Loans and leases | 11,441 | 10,772 |
Consumer | Consumer Real Estate | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 44 | 37 |
Past due, non-accruing | 11 | 5 |
Consumer | Consumer Real Estate | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 14 | 33 |
Past due, non-accruing | 58 | 55 |
Consumer | Consumer Real Estate | HELOC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 1,857 | 1,906 |
Total Accruing | 1,872 | 1,919 |
Current, non-accruing | 34 | 34 |
Total Non- Accruing | 45 | 45 |
Loans and leases | 1,917 | 1,964 |
Nonaccrual, no allowance | 6 | 7 |
Consumer | Consumer Real Estate | HELOC | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 9 | 7 |
Past due, non-accruing | 2 | 2 |
Consumer | Consumer Real Estate | HELOC | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 6 | 6 |
Past due, non-accruing | 9 | 9 |
Consumer | Consumer Real Estate | Real estate installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 9,367 | 8,658 |
Total Accruing | 9,410 | 8,715 |
Current, non-accruing | 56 | 44 |
Total Non- Accruing | 114 | 93 |
Loans and leases | 9,524 | 8,808 |
Nonaccrual, no allowance | 8 | 50 |
Consumer | Consumer Real Estate | Real estate installment loans | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 35 | 30 |
Past due, non-accruing | 9 | 3 |
Consumer | Consumer Real Estate | Real estate installment loans | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 8 | 27 |
Past due, non-accruing | 49 | 46 |
Consumer | Credit Card and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 859 | 900 |
Total Accruing | 868 | 907 |
Current, non-accruing | 2 | 1 |
Total Non- Accruing | 2 | 3 |
Loans and leases | 870 | 910 |
Consumer | Credit Card and Other | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 6 | 5 |
Past due, non-accruing | 0 | 0 |
Consumer | Credit Card and Other | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 3 | 2 |
Past due, non-accruing | 0 | 2 |
Consumer | Credit Card and Other | Credit card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 272 | 292 |
Total Accruing | 278 | 296 |
Current, non-accruing | 0 | 0 |
Total Non- Accruing | 0 | 0 |
Loans and leases | 278 | 296 |
Consumer | Credit Card and Other | Credit card | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 3 | 2 |
Past due, non-accruing | 0 | 0 |
Consumer | Credit Card and Other | Credit card | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 3 | 2 |
Past due, non-accruing | 0 | 0 |
Consumer | Credit Card and Other | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current, accruing | 587 | 608 |
Total Accruing | 590 | 611 |
Current, non-accruing | 2 | 1 |
Total Non- Accruing | 2 | 3 |
Loans and leases | 592 | 614 |
Consumer | Credit Card and Other | Other | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 3 | 3 |
Past due, non-accruing | 0 | 0 |
Consumer | Credit Card and Other | Other | 90+ Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due, accruing | 0 | 0 |
Past due, non-accruing | $ 0 | $ 2 |
Loans and Leases - Schedule O_2
Loans and Leases - Schedule Of Troubled Debt Restructurings Occurring During The Year (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 145 | 58 | 249 | 110 |
Pre-Modification Outstanding Recorded Investment | $ 27 | $ 25 | $ 45 | $ 50 |
Post-Modification Outstanding Recorded Investment | $ 27 | $ 25 | $ 45 | $ 47 |
Consumer | Credit card and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 8 | 15 | 9 | 28 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
C&I | Commercial | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 0 | 10 | 3 | 27 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 19 | $ 0 | $ 28 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 19 | $ 0 | $ 27 |
CRE | Commercial | Consumer Real Estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 0 | 0 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 12 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 10 |
HELOC | Consumer | Consumer Real Estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 42 | 7 | 56 | 19 |
Pre-Modification Outstanding Recorded Investment | $ 3 | $ 0 | $ 5 | $ 2 |
Post-Modification Outstanding Recorded Investment | $ 3 | $ 0 | $ 5 | $ 2 |
Real estate installment loans | Consumer | Consumer Real Estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 95 | 26 | 181 | 35 |
Pre-Modification Outstanding Recorded Investment | $ 24 | $ 6 | $ 40 | $ 8 |
Post-Modification Outstanding Recorded Investment | $ 24 | $ 6 | $ 40 | $ 8 |
Loans and Leases - Schedule O_3
Loans and Leases - Schedule Of Troubled Debt Restructurings Within The Previous 12 Months (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 9 | 12 | 20 | 23 |
Recorded Investment | $ | $ 1 | $ 11 | $ 1 | $ 14 |
Consumer | Credit card and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 1 | 1 | 9 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
C&I | Commercial | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 2 | 5 | 5 | 12 |
Recorded Investment | $ | $ 0 | $ 1 | $ 0 | $ 2 |
CRE | Commercial | Consumer Real Estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 0 | 2 | 0 | 2 |
Recorded Investment | $ | $ 0 | $ 9 | $ 0 | $ 9 |
HELOC | Consumer | Consumer Real Estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 0 | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate installment loans | Consumer | Consumer Real Estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number | loan | 6 | 4 | 6 | 7 |
Recorded Investment | $ | $ 1 | $ 1 | $ 1 | $ 3 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan and lease losses (less than) | $ 624 | $ 622 | $ 670 | $ 815 | $ 914 | $ 963 |
COVID-19 Deferrals | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan and lease losses (less than) | $ 1 | $ 1 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Rollforward of Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 622 | $ 914 | $ 670 | $ 963 | |
Charge-offs | (21) | (6) | (40) | (29) | |
Recoveries | 9 | 16 | 18 | 31 | |
Ending balance | 624 | 815 | 624 | 815 | |
Loans and leases | 56,529 | 56,529 | $ 54,859 | ||
Funded And Unfunded Loan Commitments | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Ending balance | 704 | 890 | 704 | 890 | |
Funded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Provision for loan and lease losses | 14 | (109) | (24) | (150) | |
Unfunded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 64 | 81 | 66 | 85 | |
Provision for loan and lease losses | 16 | (6) | 14 | (10) | |
Ending balance | 80 | 75 | 80 | 75 | |
Commercial | Commercial, financial and industrial | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 287 | 442 | 334 | 453 | |
Charge-offs | (12) | (2) | (25) | (16) | |
Recoveries | 1 | 5 | 4 | 11 | |
Ending balance | 274 | 385 | 274 | 385 | |
Loans and leases | 31,276 | 31,276 | 31,068 | ||
Commercial | Commercial, financial and industrial | Paycheck Protection Plan | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and leases | 375 | 3,800 | 375 | 3,800 | 1,000 |
Commercial | Commercial, financial and industrial | Funded And Unfunded Loan Commitments | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Ending balance | 327 | 442 | 327 | 442 | |
Commercial | Commercial, financial and industrial | Funded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Provision for loan and lease losses | (2) | (60) | (39) | (63) | |
Commercial | Commercial, financial and industrial | Unfunded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 43 | 62 | 46 | 65 | |
Provision for loan and lease losses | 10 | (5) | 7 | (8) | |
Ending balance | 53 | 57 | 53 | 57 | |
Commercial | Commercial Real Estate | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 151 | 232 | 154 | 242 | |
Charge-offs | 0 | 0 | 0 | (3) | |
Recoveries | 1 | 1 | 1 | 3 | |
Ending balance | 141 | 210 | 141 | 210 | |
Loans and leases | 12,942 | 12,942 | 12,109 | ||
Commercial | Commercial Real Estate | Funded And Unfunded Loan Commitments | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Ending balance | 158 | 219 | 158 | 219 | |
Commercial | Commercial Real Estate | Funded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Provision for loan and lease losses | (11) | (23) | (14) | (32) | |
Commercial | Commercial Real Estate | Unfunded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 12 | 11 | 12 | 10 | |
Provision for loan and lease losses | 5 | (2) | 5 | (1) | |
Ending balance | 17 | 9 | 17 | 9 | |
Consumer | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and leases | 11,441 | 11,441 | 10,772 | ||
Consumer | Consumer Real Estate | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 164 | 222 | 163 | 242 | |
Charge-offs | (2) | (1) | (3) | (4) | |
Recoveries | 6 | 8 | 11 | 14 | |
Ending balance | 183 | 203 | 183 | 203 | |
Loans and leases | 11,441 | 11,441 | 10,772 | ||
Consumer | Consumer Real Estate | Funded And Unfunded Loan Commitments | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Ending balance | 193 | 212 | 193 | 212 | |
Consumer | Consumer Real Estate | Funded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Provision for loan and lease losses | 15 | (26) | 12 | (49) | |
Consumer | Consumer Real Estate | Unfunded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 9 | 8 | 8 | 10 | |
Provision for loan and lease losses | 1 | 1 | 2 | (1) | |
Ending balance | 10 | 9 | 10 | 9 | |
Consumer | Credit Card and Other | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 20 | 18 | 19 | 26 | |
Charge-offs | (7) | (3) | (12) | (6) | |
Recoveries | 1 | 2 | 2 | 3 | |
Ending balance | 26 | 17 | 26 | 17 | |
Loans and leases | 870 | 870 | $ 910 | ||
Consumer | Credit Card and Other | Funded And Unfunded Loan Commitments | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Ending balance | 26 | 17 | 26 | 17 | |
Consumer | Credit Card and Other | Funded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Provision for loan and lease losses | 12 | 0 | 17 | (6) | |
Consumer | Credit Card and Other | Unfunded commitment | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | |
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Mortgage Banking Activity - Nar
Mortgage Banking Activity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Mortgage Banking [Line Items] | |||||
Net loans and leases | $ 55,905 | $ 55,905 | $ 54,189 | ||
Mortgage banking and title income | 34 | $ 38 | 56 | $ 91 | |
Mortgage banking and title income | |||||
Mortgage Banking [Line Items] | |||||
Mortgage banking and title income | 3 | $ 1 | |||
Sale of mortgage servicing rights | 21 | ||||
Gain on sale of mortgage servicing rights | 12 | ||||
First Horizon Bank | |||||
Mortgage Banking [Line Items] | |||||
Net loans and leases | $ 41 | $ 41 |
Mortgage Banking Activity - Res
Mortgage Banking Activity - Residential Mortgage Loans (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance at beginning of period | $ 1,172 | |
Balance at end of period | 870 | $ 1,172 |
Mortgage loans | ||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance at beginning of period | 250 | 409 |
Originations and purchases | 902 | 2,836 |
Sales, net of gains | (1,018) | (3,025) |
Mortgage loans transferred from (to) held for investment | 0 | 30 |
Balance at end of period | $ 134 | $ 250 |
Mortgage Banking Activity - MSR
Mortgage Banking Activity - MSR Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgage Banking [Abstract] | ||
Gross Carrying Amount | $ 17 | $ 39 |
Accumulated Amortization | (4) | (9) |
Net Carrying Amount | $ 13 | $ 30 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,511 | $ 1,511 |
Additions | 0 | 0 |
Goodwill, ending balance | 1,511 | 1,511 |
Regional Banking | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 880 | 880 |
Additions | 0 | 0 |
Goodwill, ending balance | 880 | 880 |
Specialty Banking | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 631 | 631 |
Additions | 0 | 0 |
Goodwill, ending balance | $ 631 | $ 631 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets and Accumulated Amortization Included in the Consolidated Statements of Condition (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 444 | $ 449 |
Accumulated Amortization | (172) | (151) |
Net Carrying Value | 272 | 298 |
Core deposit intangibles | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 371 | 371 |
Accumulated Amortization | (150) | (128) |
Net Carrying Value | 221 | 243 |
Client relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37 | 37 |
Accumulated Amortization | (13) | (11) |
Net Carrying Value | 24 | 26 |
Other | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36 | 41 |
Accumulated Amortization | (9) | (12) |
Net Carrying Value | $ 27 | $ 29 |
Preferred Stock - Non-Cumulativ
Preferred Stock - Non-Cumulative Perpetual Preferred Stock (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 31,686 | |
Liquidation Amount | $ 1,032 | |
Carrying Amount | $ 1,014 | $ 520 |
Series B | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.625% | |
Preferred stock, shares outstanding (in shares) | 8,000 | |
Liquidation Amount | $ 80 | |
Carrying Amount | $ 77 | 77 |
Series B | LIBOR | Beginning on or after August 1, 2025 | ||
Class of Stock [Line Items] | ||
Basis spread on variable rate | 426.20% | |
Series C | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.60% | |
Preferred stock, shares outstanding (in shares) | 5,750 | |
Liquidation Amount | $ 58 | |
Carrying Amount | $ 59 | 59 |
Series C | LIBOR | Beginning on or after May 1, 2026 | ||
Class of Stock [Line Items] | ||
Basis spread on variable rate | 492% | |
Series D | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.10% | |
Preferred stock, shares outstanding (in shares) | 10,000 | |
Liquidation Amount | $ 100 | |
Carrying Amount | $ 94 | 94 |
Series D | LIBOR | Beginning on or after May 1, 2024 | ||
Class of Stock [Line Items] | ||
Basis spread on variable rate | 385.90% | |
Series E | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.50% | |
Preferred stock, shares outstanding (in shares) | 1,500 | |
Liquidation Amount | $ 150 | |
Carrying Amount | $ 145 | 145 |
Series F | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 4.70% | |
Preferred stock, shares outstanding (in shares) | 1,500 | |
Liquidation Amount | $ 150 | |
Carrying Amount | $ 145 | 145 |
Series G | ||
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 4,936 | |
Liquidation Amount | $ 494 | |
Carrying Amount | $ 494 | $ 0 |
Preferred Stock - Narrative (De
Preferred Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||
Carrying Amount | $ 1,014 | $ 520 | ||
Preferred stock, shares issued (in shares) | 31,686 | 26,750 | ||
Noncontrolling interest | $ 295 | $ 295 | ||
Series G Convertible Preferred Stock | TD Merger Agreement | ||||
Class of Stock [Line Items] | ||||
Sale of preferred stock, net (approximately) | $ 494 | |||
Preferred stock convertible as a percent of outstanding shares | 4.90% | |||
Fixed rate of conversion | 5,574.136 | |||
Convertible preferred stock, shares issued upon conversion (in shares) | 4,000 | |||
Series G | ||||
Class of Stock [Line Items] | ||||
Carrying Amount | $ 494 | 0 | ||
Preferred Class A | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares issued (in shares) | 300,000 | |||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | |||
Annual Dividend Rate | 3.75% | |||
Noncontrolling interest | $ 295 | $ 295 | ||
Preferred Class A | LIBOR | ||||
Class of Stock [Line Items] | ||||
Basis spread on variable rate | 0.85% |
Components of Other Comprehen_3
Components of Other Comprehensive Income (Loss) - Schedule of Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning of period | $ 8,697 | $ 8,494 | $ 8,307 | $ 8,307 | $ 8,494 | $ 8,307 |
Net unrealized gains (losses) | (256) | 38 | (680) | (63) | ||
Amounts reclassified from AOCI | 4 | 0 | 5 | 0 | ||
Other comprehensive income (loss) | (252) | (423) | 38 | (101) | (675) | (63) |
Balance, end of period | 8,551 | 8,697 | 8,565 | 8,307 | 8,551 | 8,565 |
Total | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning of period | (711) | (288) | (241) | (140) | (288) | (140) |
Balance, end of period | (963) | (711) | (203) | (241) | (963) | (203) |
Securities AFS | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning of period | (440) | (36) | 5 | 108 | (36) | 108 |
Net unrealized gains (losses) | (231) | 38 | (635) | (65) | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss) | (231) | 38 | (635) | (65) | ||
Balance, end of period | (671) | (440) | 43 | 5 | (671) | 43 |
Cash Flow Hedges | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning of period | (18) | 3 | 10 | 12 | 3 | 12 |
Net unrealized gains (losses) | (25) | 0 | (45) | (1) | ||
Amounts reclassified from AOCI | 3 | (2) | 2 | (3) | ||
Other comprehensive income (loss) | (22) | (2) | (43) | (4) | ||
Balance, end of period | (40) | (18) | 8 | 10 | (40) | 8 |
Pension and Post-retirement Plans | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning of period | (253) | (255) | (256) | (260) | (255) | (260) |
Net unrealized gains (losses) | 0 | 0 | 0 | 3 | ||
Amounts reclassified from AOCI | 1 | 2 | 3 | 3 | ||
Other comprehensive income (loss) | 1 | 2 | 3 | 6 | ||
Balance, end of period | $ (252) | $ (253) | $ (254) | $ (256) | $ (252) | $ (254) |
Components of Other Comprehen_4
Components of Other Comprehensive Income (Loss) - Schedule of Reclassification from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Interest and fees on loans and leases | $ 492 | $ 496 | $ 936 | $ 1,003 | ||
Income tax expense | 48 | 88 | 105 | 159 | ||
Other expense | 66 | 40 | 112 | 118 | ||
Amounts reclassified from AOCI | (177) | $ (198) | (311) | $ (236) | (374) | (546) |
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amounts reclassified from AOCI | 4 | 0 | 5 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Interest and fees on loans and leases | 4 | (2) | 3 | (4) | ||
Income tax expense | (1) | 0 | (1) | 1 | ||
Amounts reclassified from AOCI | 3 | (2) | 2 | (3) | ||
Reclassification out of Accumulated Other Comprehensive Income | Pension and Post-retirement Plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Income tax expense | (1) | 0 | (1) | (1) | ||
Other expense | 2 | 2 | 4 | 4 | ||
Amounts reclassified from AOCI | $ 1 | $ 2 | $ 3 | $ 3 |
Earnings Per Share - Schedule O
Earnings Per Share - Schedule Of Reconciliation Of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Net income | $ 177 | $ 198 | $ 311 | $ 236 | $ 374 | $ 546 |
Net income attributable to noncontrolling interest | 3 | 3 | 6 | 6 | ||
Net income attributable to controlling interest | 174 | 308 | 368 | 540 | ||
Preferred stock dividends | 8 | 13 | 16 | 21 | ||
Net income available to common shareholders | $ 166 | $ 295 | $ 352 | $ 519 | ||
Weighted average common shares outstanding - basic (in shares) | 534,604 | 550,297 | 533,915 | 551,268 | ||
Effect of dilutive restricted stock, performance equity awards and options (in shares) | 7,319 | 5,913 | 7,223 | 5,230 | ||
Effect of dilutive convertible preferred stock (in shares) | 27,512 | 0 | 18,696 | 0 | ||
Weighted average common shares outstanding - diluted (in shares) | 569,435 | 556,210 | 559,834 | 556,498 | ||
Basic earnings per common share (in dollars per share) | $ 0.31 | $ 0.54 | $ 0.66 | $ 0.94 | ||
Diluted earnings per common share (in dollars per share) | $ 0.29 | $ 0.53 | $ 0.63 | $ 0.93 | ||
TD Merger Agreement | Series G Convertible Preferred Stock | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Sale of preferred stock, net (approximately) | $ 494 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule Of Anti-Dilutive Options and Awards (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average exercise price of stock options excluded from the calculation of diluted EPS (in dollars per share) | $ 27.88 | $ 20.98 | $ 25.60 | $ 20.97 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Awards excluded from the calculation of diluted EPS (in shares) | 23 | 1,516 | 48 | 1,544 |
Other Equity Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Awards excluded from the calculation of diluted EPS (in shares) | 1,892 | 1,379 | 1,231 | 1,387 |
Contingencies and Other Discl_2
Contingencies and Other Disclosures (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Estimated litigation liability | $ 7,000,000 | |
Accrued losses on loan repurchase exposure | 17,000,000 | $ 17,000,000 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | $ 1,000,000 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - Pension Plan - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated social security benefits age | 65 years | |
Pension plan contribution | $ 6 | |
Nonqualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan contribution | $ 5 | |
Defined benefit plan, expected future employer contributions, current fiscal year | $ 5 |
Retirement Plans - Schedule Of
Retirement Plans - Schedule Of Components Of Net Periodic Benefit Cost (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Components of net periodic benefit cost | ||||
Interest cost | $ 5 | $ 4 | $ 10 | $ 8 |
Expected return on plan assets | (6) | (4) | (12) | (8) |
Actuarial (gain) loss | 2 | 2 | 4 | 4 |
Other | 0 | 0 | 0 | 2 |
Net periodic benefit cost | $ 1 | $ 2 | $ 2 | $ 6 |
Business Segment Information -
Business Segment Information - Amounts of Consolidated Revenue, Expense, Tax and Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||||
Net interest income (expense) | $ 542 | $ 497 | $ 1,021 | $ 1,004 | ||
Provision for credit losses | 30 | (115) | (10) | (160) | ||
Noninterest income | 201 | 285 | 430 | 583 | ||
Noninterest expense | 488 | 498 | 982 | 1,042 | ||
Income (loss) before income taxes | 225 | 399 | 479 | 705 | ||
Income tax expense (benefit) | 48 | 88 | 105 | 159 | ||
Net income (loss) | 177 | $ 198 | 311 | $ 236 | 374 | 546 |
Average assets | 86,326 | 87,559 | 87,450 | 86,486 | ||
TD Merger Agreement | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Merger and integration expense | 25 | 34 | ||||
Regional Banking | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net interest income (expense) | 465 | 444 | 891 | 875 | ||
Provision for credit losses | 52 | (88) | 21 | (117) | ||
Noninterest income | 114 | 109 | 227 | 210 | ||
Noninterest expense | 297 | 270 | 598 | 545 | ||
Income (loss) before income taxes | 230 | 371 | 499 | 657 | ||
Income tax expense (benefit) | 54 | 87 | 117 | 153 | ||
Net income (loss) | 176 | 284 | 382 | 504 | ||
Average assets | 41,952 | 42,352 | 41,251 | 42,451 | ||
Specialty Banking | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net interest income (expense) | 141 | 153 | 285 | 312 | ||
Provision for credit losses | (18) | (21) | (21) | (28) | ||
Noninterest income | 96 | 149 | 201 | 335 | ||
Noninterest expense | 116 | 145 | 252 | 303 | ||
Income (loss) before income taxes | 139 | 178 | 255 | 372 | ||
Income tax expense (benefit) | 34 | 43 | 62 | 90 | ||
Net income (loss) | 105 | 135 | 193 | 282 | ||
Average assets | 20,227 | 20,104 | 20,236 | 20,825 | ||
Corporate | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net interest income (expense) | (64) | (100) | (155) | (183) | ||
Provision for credit losses | (4) | (6) | (10) | (15) | ||
Noninterest income | (9) | 27 | 2 | 38 | ||
Noninterest expense | 75 | 83 | 132 | 194 | ||
Income (loss) before income taxes | (144) | (150) | (275) | (324) | ||
Income tax expense (benefit) | (40) | (42) | (74) | (84) | ||
Net income (loss) | (104) | (108) | (201) | (240) | ||
Average assets | 24,147 | 25,103 | 25,963 | 23,210 | ||
Corporate | TD Merger Agreement | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Merger and integration expense | $ 38 | $ 32 | $ 75 | $ 102 |
Business Segment Information _2
Business Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Noninterest income: | ||||
Fixed income | $ 51,000 | $ 102,000 | $ 124,000 | $ 228,000 |
Deposit transactions and cash management | 42,000 | 44,000 | 86,000 | 86,000 |
Mortgage banking and title income | 34,000 | 38,000 | 56,000 | 91,000 |
Brokerage, management fees and commissions | 24,000 | 21,000 | 48,000 | 41,000 |
Card and digital banking fees | 23,000 | 21,000 | 43,000 | 38,000 |
Other service charges and fees | 15,000 | 11,000 | 28,000 | 21,000 |
Trust services and investment management | 12,000 | 14,000 | 25,000 | 26,000 |
Securities gains (losses), net | 11,000 | 6,000 | 11,000 | |
Deferred compensation income | (17,000) | 7,000 | (21,000) | 9,000 |
Other income | 17,000 | 16,000 | 35,000 | 32,000 |
Total noninterest income | 201,000 | 285,000 | 430,000 | 583,000 |
Underwriting, portfolio advisory, and other noninterest income | ||||
Noninterest income: | ||||
Revenue from contract with customer | 10,000 | 14,000 | 21,000 | 24,000 |
Regional Banking | ||||
Noninterest income: | ||||
Fixed income | 0 | 0 | 0 | 1,000 |
Deposit transactions and cash management | 38,000 | 39,000 | 77,000 | 77,000 |
Mortgage banking and title income | 0 | 0 | 0 | 0 |
Brokerage, management fees and commissions | 24,000 | 21,000 | 48,000 | 41,000 |
Card and digital banking fees | 21,000 | 18,000 | 38,000 | 32,000 |
Other service charges and fees | 9,000 | 6,000 | 16,000 | 12,000 |
Trust services and investment management | 12,000 | 14,000 | 25,000 | 26,000 |
Securities gains (losses), net | 0 | 0 | 0 | |
Deferred compensation income | 0 | 0 | 0 | 0 |
Other income | 10,000 | 11,000 | 23,000 | 21,000 |
Total noninterest income | 114,000 | 109,000 | 227,000 | 210,000 |
Specialty Banking | ||||
Noninterest income: | ||||
Fixed income | 51,000 | 102,000 | 124,000 | 227,000 |
Deposit transactions and cash management | 2,000 | 3,000 | 5,000 | 6,000 |
Mortgage banking and title income | 34,000 | 38,000 | 56,000 | 90,000 |
Brokerage, management fees and commissions | 0 | 0 | 0 | 0 |
Card and digital banking fees | 0 | 1,000 | 1,000 | 2,000 |
Other service charges and fees | 6,000 | 4,000 | 11,000 | 7,000 |
Trust services and investment management | 0 | 0 | 0 | 0 |
Securities gains (losses), net | 0 | 0 | 0 | |
Deferred compensation income | 0 | 0 | 0 | 0 |
Other income | 3,000 | 1,000 | 4,000 | 3,000 |
Total noninterest income | 96,000 | 149,000 | 201,000 | 335,000 |
Corporate | ||||
Noninterest income: | ||||
Fixed income | 0 | 0 | 0 | 0 |
Deposit transactions and cash management | 2,000 | 2,000 | 4,000 | 3,000 |
Mortgage banking and title income | 0 | 0 | 0 | 1,000 |
Brokerage, management fees and commissions | 0 | 0 | 0 | 0 |
Card and digital banking fees | 2,000 | 2,000 | 4,000 | 4,000 |
Other service charges and fees | 0 | 1,000 | 1,000 | 2,000 |
Trust services and investment management | 0 | 0 | 0 | 0 |
Securities gains (losses), net | 11,000 | 6,000 | 11,000 | |
Deferred compensation income | (17,000) | 7,000 | (21,000) | 9,000 |
Other income | 4,000 | 4,000 | 8,000 | 8,000 |
Total noninterest income | $ (9,000) | $ 27,000 | $ 2,000 | $ 38,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary Of VIE Consolidated By FHN (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Other assets | $ 3,598 | $ 3,542 |
Liabilities: | ||
Other liabilities | 2,085 | 1,563 |
Rabbi Trusts used for Deferred Compensation Plans | ||
Assets | ||
Other assets | 183 | 205 |
Liabilities: | ||
Other liabilities | $ 157 | $ 179 |
Variable Interest Entities - _2
Variable Interest Entities - Summary of the Impact of Qualifying LIHTC Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Low income housing tax credits | ||||
Variable Interest Entity [Line Items] | ||||
Amortization of qualifying LIHTC investments | $ 11 | $ 9 | $ 21 | $ 17 |
Low income housing tax credits and other tax benefits related to qualifying LIHTC investments | (12) | (8) | (23) | (17) |
Other tax benefits related to qualifying LIHTC investments | ||||
Variable Interest Entity [Line Items] | ||||
Low income housing tax credits and other tax benefits related to qualifying LIHTC investments | $ (3) | $ (3) | $ (5) | $ (5) |
Variable Interest Entities - _3
Variable Interest Entities - Summary Of VIE Not Consolidated By FHN (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Liability Recognized | $ 76,581,000,000 | $ 80,598,000,000 |
Trading securities | 1,392,000,000 | 1,601,000,000 |
Term borrowings | 1,599,000,000 | 1,590,000,000 |
Securities held to maturity, at fair value | 601,000,000 | 705,000,000 |
Securities available-for-sale | 8,941,000,000 | 8,707,000,000 |
Low income housing partnerships | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 417,000,000 | 382,000,000 |
Maximum loss exposure, contractual funding commitments | 146,000,000 | 129,000,000 |
Low income housing partnerships | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liability Recognized | 146,000,000 | 129,000,000 |
Low income housing partnerships | Other Assets | ||
Variable Interest Entity [Line Items] | ||
Maximum loss exposure, current investments | 271,000,000 | 253,000,000 |
Other tax credit investments | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 88,000,000 | 77,000,000 |
Other tax credit investments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liability Recognized | 68,000,000 | 56,000,000 |
Small issuer trust preferred holdings | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 179,000,000 | 195,000,000 |
Small issuer trust preferred holdings | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liability Recognized | 0 | 0 |
On-balance sheet trust preferred securitization | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 27,000,000 | 27,000,000 |
Loans and leases | 112,000,000 | 112,000,000 |
Trading securities | 2,000,000 | 2,000,000 |
Term borrowings | 87,000,000 | 87,000,000 |
On-balance sheet trust preferred securitization | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liability Recognized | 87,000,000 | 87,000,000 |
Holdings of agency mortgage-backed securities | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 8,542,000,000 | 8,550,000,000 |
Trading securities | 450,000,000 | 526,000,000 |
Securities held to maturity, at fair value | 687,000,000 | 712,000,000 |
Securities available-for-sale | 7,400,000,000 | 7,300,000,000 |
Holdings of agency mortgage-backed securities | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liability Recognized | 0 | 0 |
Commercial loan troubled debt restructurings | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 57,000,000 | 98,000,000 |
Maximum loss exposure, contractual funding commitments | 0 | 4,000,000 |
Loans and leases | 57,000,000 | 94,000,000 |
Commercial loan troubled debt restructurings | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liability Recognized | 0 | 0 |
Proprietary trust preferred issuances | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 0 | 0 |
Proprietary trust preferred issuances | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liability Recognized | $ 167,000,000 | $ 167,000,000 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Collateral cash payables | $ 160,000,000 | $ 160,000,000 | $ 184,000,000 | ||
Total trading revenues | 38,000,000 | $ 91,000,000 | 99,000,000 | $ 206,000,000 | |
Hedged amount of foreign currency denominated loans | 6,000,000 | 6,000,000 | 7,000,000 | ||
Derivative assets | 187,000,000 | 187,000,000 | 323,000,000 | ||
Derivative liability | 578,000,000 | 578,000,000 | 103,000,000 | ||
Additional Derivative Agreements | Derivative Instruments With Adjustable Collateral Posting Thresholds | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net fair value of derivative assets with adjustable posting thresholds | 1,000,000 | 1,000,000 | 67,000,000 | ||
Net fair value of derivative liabilities with adjustable posting thresholds | 192,000,000 | 192,000,000 | 26,000,000 | ||
Collateral received | 142,000,000 | 142,000,000 | 205,000,000 | ||
Securities posted collateral | 44,000,000 | 44,000,000 | 14,000,000 | ||
Additional Derivative Agreements | Derivative Instruments With Accelerated Termination Provisions | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net fair value of derivative assets with adjustable posting thresholds | 140,000,000 | 140,000,000 | 74,000,000 | ||
Net fair value of derivative liabilities with adjustable posting thresholds | 192,000,000 | 192,000,000 | 30,000,000 | ||
Collateral received | 284,000,000 | 284,000,000 | 213,000,000 | ||
Securities posted collateral | 44,000,000 | 44,000,000 | 18,000,000 | ||
Credit Risk Contract | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative asset, notional amount | 229,000,000 | 229,000,000 | 257,000,000 | ||
Derivative liability, notional amount | 777,000,000 | 777,000,000 | 500,000,000 | ||
Embedded Derivative Financial Instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative assets | 0 | 0 | 0 | ||
Derivative liability | 0 | 0 | 0 | ||
Visa Class B Shares | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative liabilities related to sale | 28,000,000 | 28,000,000 | 23,000,000 | ||
Derivative valuation adjustment | 12,000,000 | 12,000,000 | 19,000,000 | ||
Counterparties | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Collateral cash receivables | 238,000,000 | 238,000,000 | 181,000,000 | ||
Collateral cash payables | $ 58,000,000 | $ 58,000,000 | $ 102,000,000 |
Derivatives - Derivatives Assoc
Derivatives - Derivatives Associated with Fixed Income Trading Activities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Customer interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | $ 3,183 | $ 3,587 |
Assets | 4 | 84 |
Liabilities | 194 | 41 |
Offsetting upstream interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 3,183 | 3,587 |
Assets | 29 | 4 |
Liabilities | 2 | 8 |
Option contracts purchased | Long | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 3 | 13 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Forwards and futures purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 3,262 | 4,430 |
Assets | 14 | 2 |
Liabilities | 7 | 9 |
Forwards and futures sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 3,513 | 5,044 |
Assets | 7 | 10 |
Liabilities | $ 14 | $ 2 |
Derivatives - Derivatives Ass_2
Derivatives - Derivatives Associated With Interest Rate Risk Management Activities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Customer interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | $ 3,183 | $ 3,587 |
Assets | 4 | 84 |
Liabilities | 194 | 41 |
Offsetting upstream interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 3,183 | 3,587 |
Assets | 29 | 4 |
Liabilities | 2 | 8 |
Customer Interest Rate Contracts Hedging | Hedging Instruments And Hedged Items | Customer interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 8,232 | 8,037 |
Assets | 9 | 202 |
Liabilities | 352 | 29 |
Customer Interest Rate Contracts Hedging | Hedging Instruments And Hedged Items | Offsetting upstream interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 8,232 | 8,037 |
Assets | 68 | 4 |
Liabilities | $ 8 | $ 15 |
Derivatives - Gains_(Losses) on
Derivatives - Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities (Details) - Customer Interest Rate Contracts Hedging - Hedging Instruments And Hedged Items - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Customer interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) related to interest rate derivatives | $ 163 | $ 46 | $ 517 | $ (168) |
Offsetting upstream interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) related to interest rate derivatives | $ (163) | $ (46) | $ (517) | $ 168 |
Derivatives - Derivatives Ass_3
Derivatives - Derivatives Associated With Cash Flow Hedges (Details) - Cash Flow Hedge - Hedging Instruments And Hedged Items - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | $ 3,850 | $ 1,100 |
Assets | 54 | 13 |
Liabilities | 0 | 0 |
Interest Rate Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Variability in cash flows related to debt instruments (primarily loans) | $ 3,850 | $ 1,100 |
Derivatives - Gains_(Losses) _2
Derivatives - Gains/(Losses) on Derivatives Associated with Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax gains expected to be reclassified to earnings in the next twelve months | $ 7 | |||
Hedging Instruments And Hedged Items | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses), cash flow hedges | $ (25) | $ 0 | (45) | $ (1) |
Gain (loss) reclassified from AOCI into interest income | 3 | (2) | 2 | (3) |
Hedging Instruments And Hedged Items | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses), cash flow hedges | $ 37 | $ (6) | $ 69 | $ (14) |
Derivatives - Notional and Fair
Derivatives - Notional and Fair Value of Mortgage Banking Hedges (Details) - Mortgage Banking Hedges - Hedged Items - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Option contracts written | ||
Derivative [Line Items] | ||
Notional | $ 144 | $ 241 |
Assets | 3 | 4 |
Liabilities | 0 | 0 |
Forward contracts written | ||
Derivative [Line Items] | ||
Notional | 239 | 404 |
Assets | 1 | 0 |
Liabilities | $ 1 | $ 0 |
Derivatives - Gains_(Losses) _3
Derivatives - Gains/(Losses) on Derivatives Associated with Mortgage Banking Hedges (Details) - Mortgage Banking Hedges - Hedged Items - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Option contracts written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | $ (2) | $ 1 | $ 1 | $ (9) |
Forward contracts written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | $ 9 | $ (11) | $ 27 | $ 12 |
Derivatives - Derivative Assets
Derivatives - Derivative Assets and Collateral Received (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Gross amounts of recognized assets | $ 187 | $ 323 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of assets presented in the Balance Sheets | 187 | 323 |
Derivative liabilities available for offset | (27) | (36) |
Collateral received | (160) | (184) |
Net amount | 0 | 103 |
Derivative assets not subject to master netting agreements | 2 | 2 |
Interest rate derivative contracts | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 166 | 311 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of assets presented in the Balance Sheets | 166 | 311 |
Derivative liabilities available for offset | (15) | (32) |
Collateral received | (151) | (181) |
Net amount | 0 | 98 |
Forward contracts | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 21 | 12 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of assets presented in the Balance Sheets | 21 | 12 |
Derivative liabilities available for offset | (12) | (4) |
Collateral received | (9) | (3) |
Net amount | $ 0 | $ 5 |
Derivatives - Derivative Liabil
Derivatives - Derivative Liabilities and Collateral Pledged (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Gross amounts of recognized liabilities | $ 578 | $ 103 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of liabilities presented in the Balance Sheets | 578 | 103 |
Derivative assets available for offset | (27) | (36) |
Collateral pledged | (175) | (39) |
Net amount | 376 | 28 |
Derivative liabilities not subject to master netting agreements | 28 | 24 |
Interest rate derivative contracts | ||
Derivative [Line Items] | ||
Gross amounts of recognized liabilities | 557 | 93 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of liabilities presented in the Balance Sheets | 557 | 93 |
Derivative assets available for offset | (15) | (32) |
Collateral pledged | (167) | (38) |
Net amount | 375 | 23 |
Forward contracts | ||
Derivative [Line Items] | ||
Gross amounts of recognized liabilities | 21 | 10 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of liabilities presented in the Balance Sheets | 21 | 10 |
Derivative assets available for offset | (12) | (4) |
Collateral pledged | (8) | (1) |
Net amount | $ 1 | $ 5 |
Master Netting and Similar Ag_3
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions - Securities Purchased Under Agreements To Resell And Collateral Pledged By Counterparties (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Securities Purchased under Agreements to Resell [Abstract] | ||
Gross amounts of recognized assets | $ 423 | $ 488 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of assets presented in the Balance Sheets | 423 | 488 |
Offsetting securities sold under agreements to repurchase | (6) | (10) |
Securities collateral (not recognized on FHN’s Balance Sheets) | (415) | (476) |
Net amount | $ 2 | $ 2 |
Master Netting and Similar Ag_4
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions - Securities Sold Under Agreements To Repurchase And Collateral Pledged By Company (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Gross amounts of recognized liabilities | $ 1,158 | $ 1,247 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of liabilities presented in the Balance Sheets | 1,158 | 1,247 |
Offsetting securities purchased under agreements to resell | (6) | (10) |
Securities/ government guaranteed loans collateral | (1,152) | (1,237) |
Net amount | $ 0 | $ 0 |
Master Netting and Similar Ag_5
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions - Schedule of the Remaining Contractual Maturity by Collateral Type of Securities Sold Under Agreements To Repurchase (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 1,158 | $ 1,247 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1,158 | 1,247 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
U.S. treasuries | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 6 | 33 |
U.S. treasuries | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 6 | 33 |
U.S. treasuries | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Government agency issued MBS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1,027 | 1,068 |
Government agency issued MBS | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1,027 | 1,068 |
Government agency issued MBS | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Government agency issued CMO | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 95 | |
Government agency issued CMO | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 95 | |
Government agency issued CMO | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | |
Other U.S. government agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 30 | 31 |
Other U.S. government agencies | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 30 | 31 |
Other U.S. government agencies | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 0 | 0 |
Government guaranteed loans (SBA and USDA) | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 115 | |
Government guaranteed loans (SBA and USDA) | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 115 | |
Government guaranteed loans (SBA and USDA) | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 0 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | $ 1,392 | $ 1,601 |
Loans held-for-sale | 143 | 258 |
Securities available for sale at fair value | 8,941 | 8,707 |
Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 143 | 258 |
Securities available for sale at fair value | 8,941 | 8,707 |
Total other assets | 326 | 474 |
Total assets | 10,802 | 11,040 |
Total other liabilities | 606 | 128 |
Total liabilities | 1,000 | 554 |
Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 0 | 0 |
Securities available for sale at fair value | 0 | 0 |
Total other assets | 159 | 162 |
Total assets | 159 | 162 |
Total other liabilities | 21 | 11 |
Total liabilities | 21 | 11 |
Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 109 | 230 |
Securities available for sale at fair value | 8,941 | 8,707 |
Total other assets | 167 | 312 |
Total assets | 10,583 | 10,812 |
Total other liabilities | 557 | 94 |
Total liabilities | 951 | 520 |
Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 34 | 28 |
Securities available for sale at fair value | 0 | 0 |
Total other assets | 0 | 0 |
Total assets | 60 | 66 |
Total other liabilities | 28 | 23 |
Total liabilities | 28 | 23 |
Deferred compensation mutual funds | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 115 | 125 |
Deferred compensation mutual funds | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 115 | 125 |
Deferred compensation mutual funds | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Deferred compensation mutual funds | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Equity, mutual funds, and other | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 22 | 25 |
Equity, mutual funds, and other | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 22 | 25 |
Equity, mutual funds, and other | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Equity, mutual funds, and other | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Derivatives, forwards and futures | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 22 | 12 |
Total other liabilities | 21 | 11 |
Derivatives, forwards and futures | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 22 | 12 |
Total other liabilities | 21 | 11 |
Derivatives, forwards and futures | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, forwards and futures | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, interest rate contracts | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 166 | 311 |
Total other liabilities | 556 | 93 |
Derivatives, interest rate contracts | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, interest rate contracts | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 166 | 311 |
Total other liabilities | 556 | 93 |
Derivatives, interest rate contracts | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, other | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 1 | 1 |
Total other liabilities | 29 | 24 |
Derivatives, other | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, other | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 1 | 1 |
Total other liabilities | 1 | 1 |
Derivatives, other | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 28 | 23 |
Government agency issued MBS | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 4,779 | 5,055 |
Government agency issued MBS | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 0 | 0 |
Government agency issued MBS | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 4,779 | 5,055 |
Government agency issued MBS | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 0 | 0 |
Government agency issued CMO | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 2,626 | 2,257 |
Government agency issued CMO | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 0 | 0 |
Government agency issued CMO | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 2,626 | 2,257 |
Government agency issued CMO | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 0 | 0 |
Other U.S. government agencies | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 974 | 850 |
Other U.S. government agencies | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 0 | 0 |
Other U.S. government agencies | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 974 | 850 |
Other U.S. government agencies | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 0 | 0 |
States and municipalities | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 562 | 545 |
States and municipalities | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 0 | 0 |
States and municipalities | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 562 | 545 |
States and municipalities | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available for sale at fair value | 0 | 0 |
Specialty Banking | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 1,392 | 1,601 |
Total trading liabilities | 394 | 426 |
Specialty Banking | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | 0 |
Specialty Banking | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 1,366 | 1,563 |
Total trading liabilities | 394 | 426 |
Specialty Banking | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 26 | 38 |
Total trading liabilities | 0 | 0 |
Specialty Banking | U.S. treasuries | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 19 | 85 |
Total trading liabilities | 298 | 334 |
Specialty Banking | U.S. treasuries | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | 0 |
Specialty Banking | U.S. treasuries | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 19 | 85 |
Total trading liabilities | 298 | 334 |
Specialty Banking | U.S. treasuries | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | 0 |
Specialty Banking | Government agency issued MBS | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 228 | 464 |
Total trading liabilities | 1 | |
Specialty Banking | Government agency issued MBS | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | |
Specialty Banking | Government agency issued MBS | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 228 | 464 |
Total trading liabilities | 1 | |
Specialty Banking | Government agency issued MBS | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | |
Specialty Banking | Government agency issued CMO | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 223 | 62 |
Total trading liabilities | 1 | |
Specialty Banking | Government agency issued CMO | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | |
Specialty Banking | Government agency issued CMO | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 223 | 62 |
Total trading liabilities | 1 | |
Specialty Banking | Government agency issued CMO | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | |
Specialty Banking | Other U.S. government agencies | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 50 | 276 |
Specialty Banking | Other U.S. government agencies | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | Other U.S. government agencies | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 50 | 276 |
Specialty Banking | Other U.S. government agencies | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | States and municipalities | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 13 | 34 |
Specialty Banking | States and municipalities | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | States and municipalities | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 13 | 34 |
Specialty Banking | States and municipalities | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | Corporate and other debt | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 833 | 642 |
Total trading liabilities | 95 | 91 |
Specialty Banking | Corporate and other debt | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | 0 |
Specialty Banking | Corporate and other debt | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 833 | 642 |
Total trading liabilities | 95 | 91 |
Specialty Banking | Corporate and other debt | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities | 0 | 0 |
Specialty Banking | Interest-only strips | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 26 | 38 |
Specialty Banking | Interest-only strips | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | Interest-only strips | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | Interest-only strips | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | $ 26 | $ 38 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net derivative liabilities | ||||
Beginning balance | $ (18) | $ (21) | $ (23) | $ (14) |
Total net gains (losses) included in net income | (12) | 0 | (12) | (9) |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Settlements | 2 | 3 | 7 | 5 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending balance | (28) | (18) | (28) | (18) |
Net unrealized gains (losses) included in net income | (12) | 0 | (12) | (9) |
Interest-only strips | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 12 | 22 | 38 | 32 |
Total net gains (losses) included in net income | (3) | (1) | (3) | 4 |
Purchases | 0 | 0 | 0 | |
Sales | (6) | (37) | (33) | |
Settlements | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 17 | 15 | 28 | 27 |
Ending balance | 26 | 30 | 26 | 30 |
Net unrealized gains (losses) included in net income | (3) | (1) | (4) | 1 |
Loans held for sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 32 | 12 | 28 | 12 |
Total net gains (losses) included in net income | 0 | 1 | 0 | 2 |
Purchases | 5 | 1 | 5 | |
Sales | (10) | 0 | (10) | |
Settlements | 0 | (1) | (1) | (2) |
Net transfers into (out of) Level 3 | 2 | 18 | 6 | 18 |
Ending balance | 34 | 25 | 34 | 25 |
Net unrealized gains (losses) included in net income | $ 0 | 1 | $ 0 | 2 |
Loans held for investment | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 17 | 16 | ||
Total net gains (losses) included in net income | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | (2) | ||
Net transfers into (out of) Level 3 | (17) | (14) | ||
Ending balance | 0 | 0 | ||
Net unrealized gains (losses) included in net income | $ 0 | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Fair value, asset (liability), unrealized gain (loss), OCI | $ 0 | $ 0 | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Fixed asset impairments (current year less than) | $ 1,000,000 | $ 1,000,000 | 1,000,000 | 33,000,000 |
Corporate | 2019 Business Optimization | Disposition of Acquired Properties | ||||
Segment Reporting Information [Line Items] | ||||
Asset impairment charges | $ 1,000,000 | $ 0 | $ 1,000,000 | $ 3,000,000 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | $ 143 | $ 258 |
Loans and leases | 56,529 | 54,859 |
Non Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases | 133 | 84 |
OREO | 2 | 3 |
Other assets | 40 | 30 |
Non Recurring | Loans held for sale—first mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 1 | 1 |
Non Recurring | Loans held for sale—SBAs and USDA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 690 | 853 |
Non Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases | 0 | 0 |
OREO | 0 | 0 |
Other assets | 0 | 0 |
Non Recurring | Level 1 | Loans held for sale—first mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 0 | 0 |
Non Recurring | Level 1 | Loans held for sale—SBAs and USDA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 0 | 0 |
Non Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases | 0 | 0 |
OREO | 0 | 0 |
Other assets | 0 | 0 |
Non Recurring | Level 2 | Loans held for sale—first mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 0 | 0 |
Non Recurring | Level 2 | Loans held for sale—SBAs and USDA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 690 | 852 |
Non Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases | 133 | 84 |
OREO | 2 | 3 |
Other assets | 40 | 30 |
Non Recurring | Level 3 | Loans held for sale—first mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 1 | 1 |
Non Recurring | Level 3 | Loans held for sale—SBAs and USDA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | $ 0 | $ 1 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Gains/(losses) on Nonrecurring Fair Value Measurements (Details) - Non Recurring - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains/(losses),loans and leases | $ 0 | $ (1) | $ (1) | $ (3) |
Net gains/(losses), OREO | 0 | (1) | 0 | (1) |
Net gains/(losses), Other assets | (1) | 0 | (2) | 0 |
Gains (losses) on financial assets measured on non-recurring basis | (4) | (4) | (7) | (6) |
SBAs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains/(losses), loans held for sale - SBAs and USDA | $ (3) | $ (2) | $ (4) | $ (2) |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements (Details) $ in Millions | Jun. 30, 2022 USD ($) month | Dec. 31, 2021 USD ($) month |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale at fair value | $ 8,941 | $ 8,707 |
Loans held-for-sale | 143 | 258 |
Derivative Liabilities, fair value | 578 | 103 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, fair value | 28 | 23 |
Loans and leases, fair value | 133 | 84 |
OREO, fair value | 2 | 3 |
Level 3 | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 40 | 30 |
Level 3 | SBAs | Loans Held For Sale - SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 1 | |
Level 3 | Residential Real Estate | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 35 | 29 |
Level 3 | Interest-only strips | Trading Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale at fair value | $ 26 | $ 38 |
Constant prepayment rate | Level 3 | SBAs | Minimum | Discounted cash flow | Loans Held For Sale - SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 8 | |
Constant prepayment rate | Level 3 | SBAs | Maximum | Discounted cash flow | Loans Held For Sale - SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 12 | |
Constant prepayment rate | Level 3 | SBAs | Weighted Average | Discounted cash flow | Loans Held For Sale - SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.10 | |
Constant prepayment rate | Level 3 | Interest-only strips | Minimum | Discounted cash flow | Trading Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.12 | 0.11 |
Constant prepayment rate | Level 3 | Interest-only strips | Maximum | Discounted cash flow | Trading Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.12 | |
Constant prepayment rate | Level 3 | Interest-only strips | Weighted Average | Discounted cash flow | Trading Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.12 | 0.11 |
Bond equivalent yield | Level 3 | SBAs | Minimum | Discounted cash flow | Loans Held For Sale - SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 11 | |
Bond equivalent yield | Level 3 | SBAs | Weighted Average | Discounted cash flow | Loans Held For Sale - SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.11 | |
Bond equivalent yield | Level 3 | Interest-only strips | Minimum | Discounted cash flow | Trading Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.16 | 0.11 |
Bond equivalent yield | Level 3 | Interest-only strips | Maximum | Discounted cash flow | Trading Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.18 | 0.14 |
Bond equivalent yield | Level 3 | Interest-only strips | Weighted Average | Discounted cash flow | Trading Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.16 | 0.11 |
Prepayment speeds - First mortgage | Level 3 | Loans held for sale—first mortgages | Minimum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.03 | 4 |
Prepayment speeds - First mortgage | Level 3 | Loans held for sale—first mortgages | Maximum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.10 | 12 |
Prepayment speeds - First mortgage | Level 3 | Loans held for sale—first mortgages | Weighted Average | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.04 | 0.05 |
Foreclosure losses | Level 3 | Residential Real Estate | Minimum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.63 | 54 |
Foreclosure losses | Level 3 | Residential Real Estate | Maximum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.77 | 66 |
Foreclosure losses | Level 3 | Residential Real Estate | Weighted Average | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.65 | 0.65 |
Loss severity trends - First mortgage | Level 3 | Loans held for sale—first mortgages | Minimum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0 | 1 |
Loss severity trends - First mortgage | Level 3 | Loans held for sale—first mortgages | Maximum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.12 | 14 |
Loss severity trends - First mortgage | Level 3 | Loans held for sale—first mortgages | Weighted Average | Discounted cash flow | Loans Held For Sale, Residential Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.07 | 0.08 |
Visa covered litigation resolution amount | Level 3 | Minimum | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input, value | $ 5,400 | $ 5,800 |
Visa covered litigation resolution amount | Level 3 | Maximum | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input, value | 6,200 | 6,200 |
Visa covered litigation resolution amount | Level 3 | Weighted Average | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input, value | $ 5,900 | $ 6,000 |
Probability of resolution scenarios | Level 3 | Minimum | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input | 0.10 | 15 |
Probability of resolution scenarios | Level 3 | Maximum | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input | 0.30 | 35 |
Probability of resolution scenarios | Level 3 | Weighted Average | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input | 0.24 | 0.24 |
Time until resolution | Level 3 | Minimum | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input | month | 6 | 12 |
Time until resolution | Level 3 | Maximum | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input | month | 36 | 36 |
Time until resolution | Level 3 | Weighted Average | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, measurement input | month | 24 | 25 |
Marketability adjustments for specific properties | Level 3 | Minimum | Appraisals from comparable properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases, measurement input | 0 | 0 |
Marketability adjustments for specific properties | Level 3 | Minimum | Appraisals from comparable properties | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, measurement input | 0 | 0 |
Marketability adjustments for specific properties | Level 3 | Maximum | Appraisals from comparable properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases, measurement input | 0.10 | 10 |
Marketability adjustments for specific properties | Level 3 | Maximum | Appraisals from comparable properties | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, measurement input | 0.25 | 25 |
Borrowing base certificates adjustment | Level 3 | Minimum | Other collateral valuations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases, measurement input | 0.20 | 20 |
Borrowing base certificates adjustment | Level 3 | Maximum | Other collateral valuations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases, measurement input | 0.50 | 50 |
Financial Statements/Auction values adjustment | Level 3 | Minimum | Other collateral valuations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases, measurement input | 0 | 0 |
Financial Statements/Auction values adjustment | Level 3 | Maximum | Other collateral valuations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases, measurement input | 0.25 | 25 |
Adjustment for value changes since appraisal | Level 3 | Minimum | Appraisals from comparable properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO measurement input | 0 | 0 |
Adjustment for value changes since appraisal | Level 3 | Maximum | Appraisals from comparable properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO measurement input | 0.10 | 10 |
Adjustments to current sales yields for specific properties | Level 3 | Minimum | Discounted cash flow | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, measurement input | 0 | 0 |
Adjustments to current sales yields for specific properties | Level 3 | Maximum | Discounted cash flow | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, measurement input | 0.15 | 15 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | $ 143 | $ 258 |
Held for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 143 | 258 |
Fair value carrying amount less aggregate unpaid principal - Total loans | (5) | (6) |
Nonaccrual loans | 4 | 4 |
Fair value carrying amount less aggregate unpaid principal - Nonaccrual loans | (3) | (3) |
Aggregate unpaid principal | Held for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 148 | 264 |
Nonaccrual loans | $ 7 | $ 7 |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities - Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Mortgage Banking Noninterest Income | Loans held for sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value included in net income | $ 2 | $ 4 | $ (6) | $ (5) |
Fair Value of Assets and Lia_11
Fair Value of Assets and Liabilities - Summary Of Book Value And Estimated Fair Value Of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | $ 55,905 | $ 54,189 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 9,475 | 14,907 |
Securities Purchased under Agreements to Resell | 423 | 488 |
Trading securities | 1,392 | 1,601 |
Loans held for sale: | 870 | 1,172 |
Securities available-for-sale | 8,941 | 8,707 |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | 687 | 712 |
Derivative assets | 187 | 323 |
Other Assets Financial Instruments [Abstract] | ||
Total assets | 85,132 | 89,092 |
Liabilities: | ||
Trading liabilities | 394 | 426 |
Short Term Financial Liabilities [Abstract] | ||
Securities sold under agreements to repurchase | 1,158 | 1,247 |
Long-Term Debt, Unclassified [Abstract] | ||
Other long term borrowings | 1,599 | 1,590 |
Derivative liabilities | 578 | 103 |
Total liabilities | 76,581 | 80,598 |
Fair Value, Inputs, Level 3 | FHLB-Cincinnati Stock | ||
Long-Term Debt, Unclassified [Abstract] | ||
Restricted investments | 29 | 29 |
Fair Value, Inputs, Level 3 | FRB Stock | ||
Long-Term Debt, Unclassified [Abstract] | ||
Restricted investments | 204 | 203 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 55,905 | 54,189 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 9,475 | 14,907 |
Federal funds sold | 289 | 153 |
Securities Purchased under Agreements to Resell | 423 | 488 |
Total short-term financial assets | 10,187 | 15,548 |
Trading securities | 1,392 | 1,601 |
Loans held for sale: | 870 | 1,172 |
Securities available-for-sale | 8,941 | 8,707 |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | 687 | 712 |
Derivative assets | 189 | 324 |
Other Assets Financial Instruments [Abstract] | ||
Tax credit investments | 504 | 456 |
Deferred compensation mutual funds | 115 | 125 |
Equity, mutual funds, and other | 255 | 257 |
Total other assets | 874 | 838 |
Total assets | 79,045 | 83,091 |
Liabilities: | ||
Defined maturity deposits | 2,888 | 3,500 |
Trading liabilities | 394 | 426 |
Short Term Financial Liabilities [Abstract] | ||
Federal Funds Purchased | 566 | 775 |
Securities sold under agreements to repurchase | 1,158 | 1,247 |
Other short-term borrowings | 229 | 102 |
Total short-term financial liabilities | 1,953 | 2,124 |
Long-Term Debt, Unclassified [Abstract] | ||
Real estate investment trust-preferred | 46 | 46 |
Term borrowings—new market tax credit investment | 66 | 59 |
Secured borrowings | 7 | 6 |
Junior subordinated debentures | 148 | 148 |
Other long term borrowings | 1,332 | 1,331 |
Total term borrowings | 1,599 | 1,590 |
Derivative liabilities | 606 | 128 |
Total liabilities | 7,440 | 7,768 |
Reported Value Measurement | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 31,002 | 30,734 |
Reported Value Measurement | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 12,801 | 11,955 |
Reported Value Measurement | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 11,258 | 10,609 |
Reported Value Measurement | Credit Card And Other Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 844 | 891 |
Reported Value Measurement | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale: | 143 | 258 |
Reported Value Measurement | USDA & SBA loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 690 | 853 |
Reported Value Measurement | Other loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 3 | 24 |
Reported Value Measurement | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 34 | 37 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 56,624 | 55,023 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 9,475 | 14,907 |
Federal funds sold | 289 | 153 |
Securities Purchased under Agreements to Resell | 423 | 488 |
Total short-term financial assets | 10,187 | 15,548 |
Trading securities | 1,392 | 1,601 |
Loans held for sale: | 870 | 1,175 |
Securities available-for-sale | 8,941 | 8,707 |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | 601 | 705 |
Derivative assets | 189 | 324 |
Other Assets Financial Instruments [Abstract] | ||
Tax credit investments | 498 | 450 |
Deferred compensation mutual funds | 115 | 125 |
Equity, mutual funds, and other | 255 | 257 |
Total other assets | 868 | 832 |
Total assets | 79,672 | 83,915 |
Liabilities: | ||
Defined maturity deposits | 2,893 | 3,524 |
Trading liabilities | 394 | 426 |
Short Term Financial Liabilities [Abstract] | ||
Federal Funds Purchased | 566 | 775 |
Securities sold under agreements to repurchase | 1,158 | 1,247 |
Other short-term borrowings | 229 | 102 |
Total short-term financial liabilities | 1,953 | 2,124 |
Long-Term Debt, Unclassified [Abstract] | ||
Real estate investment trust-preferred | 47 | 47 |
Term borrowings—new market tax credit investment | 61 | 58 |
Secured borrowings | 7 | 6 |
Junior subordinated debentures | 150 | 150 |
Other long term borrowings | 1,331 | 1,452 |
Total term borrowings | 1,596 | 1,713 |
Derivative liabilities | 606 | 128 |
Total liabilities | 7,442 | 7,915 |
Unfunded Commitments [Abstract] | ||
Loan commitments | 1 | 1 |
Standby And Other Commitments | 6 | 6 |
Estimate of Fair Value Measurement | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 31,296 | 31,020 |
Estimate of Fair Value Measurement | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 13,191 | 11,986 |
Estimate of Fair Value Measurement | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 11,252 | 11,111 |
Estimate of Fair Value Measurement | Credit Card And Other Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 885 | 906 |
Estimate of Fair Value Measurement | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale: | 143 | 258 |
Estimate of Fair Value Measurement | USDA & SBA loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 690 | 856 |
Estimate of Fair Value Measurement | Other loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 3 | 24 |
Estimate of Fair Value Measurement | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 34 | 37 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 9,475 | 14,907 |
Federal funds sold | 0 | 0 |
Securities Purchased under Agreements to Resell | 0 | 0 |
Total short-term financial assets | 9,475 | 14,907 |
Trading securities | 0 | 0 |
Loans held for sale: | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | 0 | 0 |
Derivative assets | 22 | 12 |
Other Assets Financial Instruments [Abstract] | ||
Tax credit investments | 0 | 0 |
Deferred compensation mutual funds | 115 | 125 |
Equity, mutual funds, and other | 22 | 25 |
Total other assets | 137 | 150 |
Total assets | 9,634 | 15,069 |
Liabilities: | ||
Defined maturity deposits | 0 | 0 |
Trading liabilities | 0 | 0 |
Short Term Financial Liabilities [Abstract] | ||
Federal Funds Purchased | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Total short-term financial liabilities | 0 | 0 |
Long-Term Debt, Unclassified [Abstract] | ||
Real estate investment trust-preferred | 0 | 0 |
Term borrowings—new market tax credit investment | 0 | 0 |
Secured borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Other long term borrowings | 0 | 0 |
Total term borrowings | 0 | 0 |
Derivative liabilities | 21 | 11 |
Total liabilities | 21 | 11 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Credit Card And Other Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale: | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | USDA & SBA loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Other loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 0 | 0 |
Federal funds sold | 289 | 153 |
Securities Purchased under Agreements to Resell | 423 | 488 |
Total short-term financial assets | 712 | 641 |
Trading securities | 1,366 | 1,563 |
Loans held for sale: | 802 | 1,109 |
Securities available-for-sale | 8,941 | 8,707 |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | 601 | 705 |
Derivative assets | 167 | 312 |
Other Assets Financial Instruments [Abstract] | ||
Tax credit investments | 0 | 0 |
Deferred compensation mutual funds | 0 | 0 |
Equity, mutual funds, and other | 0 | 0 |
Total other assets | 0 | 0 |
Total assets | 12,589 | 13,037 |
Liabilities: | ||
Defined maturity deposits | 2,893 | 3,524 |
Trading liabilities | 394 | 426 |
Short Term Financial Liabilities [Abstract] | ||
Federal Funds Purchased | 566 | 775 |
Securities sold under agreements to repurchase | 1,158 | 1,247 |
Other short-term borrowings | 229 | 102 |
Total short-term financial liabilities | 1,953 | 2,124 |
Long-Term Debt, Unclassified [Abstract] | ||
Real estate investment trust-preferred | 0 | 0 |
Term borrowings—new market tax credit investment | 0 | 0 |
Secured borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Other long term borrowings | 1,331 | 1,452 |
Total term borrowings | 1,331 | 1,452 |
Derivative liabilities | 557 | 94 |
Total liabilities | 7,128 | 7,620 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Credit Card And Other Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale: | 109 | 230 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | USDA & SBA loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 690 | 855 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Other loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 3 | 24 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 56,624 | 55,023 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Securities Purchased under Agreements to Resell | 0 | 0 |
Total short-term financial assets | 0 | 0 |
Trading securities | 26 | 38 |
Loans held for sale: | 68 | 66 |
Securities available-for-sale | 0 | 0 |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | 0 | 0 |
Derivative assets | 0 | 0 |
Other Assets Financial Instruments [Abstract] | ||
Tax credit investments | 498 | 450 |
Deferred compensation mutual funds | 0 | 0 |
Equity, mutual funds, and other | 233 | 232 |
Total other assets | 731 | 682 |
Total assets | 57,449 | 55,809 |
Liabilities: | ||
Defined maturity deposits | 0 | 0 |
Trading liabilities | 0 | 0 |
Short Term Financial Liabilities [Abstract] | ||
Federal Funds Purchased | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Total short-term financial liabilities | 0 | 0 |
Long-Term Debt, Unclassified [Abstract] | ||
Real estate investment trust-preferred | 47 | 47 |
Term borrowings—new market tax credit investment | 61 | 58 |
Secured borrowings | 7 | 6 |
Junior subordinated debentures | 150 | 150 |
Other long term borrowings | 0 | 0 |
Total term borrowings | 265 | 261 |
Derivative liabilities | 28 | 23 |
Total liabilities | 293 | 284 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 31,296 | 31,020 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 13,191 | 11,986 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 11,252 | 11,111 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Credit Card And Other Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 885 | 906 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale: | 34 | 28 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | USDA & SBA loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 0 | 1 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Other loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale: | 34 | 37 |
Contractual Amount | ||
Unfunded Commitments [Abstract] | ||
Loan commitments | 26,049 | 24,229 |
Standby And Other Commitments | $ 723 | $ 810 |
Other Events (Details)
Other Events (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Subsequent Event | Lenders Title Group | |
Subsequent Event [Line Items] | |
Gain on disposal of business | $ 20 |